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Ukraine calls for the publication of Irish investigation on alumina exports as soon as possible
On a Wednesday visit to Dublin, Ukraine President Volodymyr Zelenskiy demanded that Ireland complete an investigation to determine if Irish alumina exported to Russia is being used to make weapons-grade aluminium. Ireland has been under increasing pressure in recent weeks because of its Aughinish Alumina Plant, Europe's biggest refinery for alumina (a feedstock used to produce aluminium). It continues to send the material to Russia where it can be used to produce aluminium for military equipment and weapons. Dublin has ordered an investigation into alumina exports and defended an EU decision not to include the plant in Russian sanctions packages. The facility, located in southwest Ireland, is an important part of EU supply chains. "We are grateful that Ireland is conducting an investigation into the matter." Zelenskiy said that he hoped for a positive outcome for the country and that he hoped we wouldn't need to wait for months before we got it. "Every tonne raw material that ends in Russia is used to our detriment," he said. In its 21st set of sanctions, the EU didn't include any alumina exports from Ireland to Russia or mention Rusal's Irish plant. Kaja Kallas, the EU's chief of foreign policy, said that future sanctions could include a limit on Irish alumina exports to Russia. Martin, who invited Zelenskiy, to Dublin, for the start of Ireland's six month term as rotating president of the EU, said that the investigation was close to completion and Dublin will discuss it with European Commission once finalised. Martin stated that "we do not want to be in a situation?where materials from an Irish plant go to support the Russian War Machine."
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Stocks flat as traders digest Fed comments, oil falls
The gauge of world stock markets remained unchanged to begin the third quarter on Wednesday, as the U.S. Central Bank head stated that inflation expectations had?fallen?"but policy will not be loose. Meanwhile, crude oil prices fell due to optimism about U.S. - Iran talks. The traders also kept an eye out for any possible Japanese intervention on the currency markets after the yen hit new lows of 40 years against the dollar. Kevin Warsh, Federal Reserve Chair, said that inflation expectations and risks have decreased in recent weeks. Kevin Warsh said that he would stick to the U.S. Central Bank's 2% target for inflation and "disappoint anyone" who expects loose monetary policies. His comments have weighed heavily on the dollar. This is because rising expectations for Fed rate increases this year are a major factor in the rise of the dollar. Inflation has risen well above the central bank's annual 2% target. Many analysts still believe that the inflation situation will improve in coming months. Steve Englander, Standard Chartered Bank New York's head of global G10 research and North America Macro strategy, said that there was no evidence that the imbalance between inflation and activity is increasing. Englander said that you can wait to see how the longer-term trends in technology play out. The Fed is in control of the unit labor costs. The yen's last day performance against the dollar was flat. Interest rate futures indicate that the Fed will not make any changes at its meeting later this month. However, a hike is expected in September. The trades are also looking at Thursday's economic report, which is expected to show that U.S. employers created 110,000 new jobs in June. According to the median estimate by economists polled, the unemployment rate will remain unchanged at 4.3%. ADP's National Employment Report showed on Wednesday that private employment increased by 98,000 last month. This was below the forecasts of economists who expected 118,000 new jobs. The Dow Jones Industrial Average rose by 50.38 points or 0.10% to 52,368.89. The S&P 500 gained 3.37 points or 0.04% to 7,502.61, and the Nasdaq Composite dropped 69.65 or 0.27% to 26,143.71. MSCI's index of global stocks fell 0.68 points or 0.06% to 1,119.78. The pan-European STOXX 600 fell by 0.38% while Europe's FTSEurofirst 300 fell by?11.45 or 0.45%. Emerging market stocks rose 0.70 points or 0.04% to 1,723.59. Japan's Nikkei index gained 0.6%, after it surged 37% in the last quarter. Strong tech demand lifted sentiment among major manufacturers to an 8-year high. South Korea's main stock index dropped about 2% after a rally of 68% last quarter, driven by AI-driven chip demand. Oil prices dropped on energy markets as optimism about U.S. Iran talks eased supply concerns. Price Futures Group senior analyst Phil Flynn said that there is more optimism now that more oil passes through the Strait of Hormuz. The market signals that we will probably be producing more oil in the world than ever before once we have overcome this issue. U.S. crude dropped 1.83%, to $68.23 per barrel. Brent was down 2.21% to $71.34 a barrel. Both crude oil and Brent are up nearly 20% on the year despite sharp price drops last quarter. Spot gold increased 1.4% on Tuesday after its biggest quarterly decline since 2013.
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Huge crowds celebrating Mexico's World Cup victory resulted in four deaths
Mexico City's central avenue was thronged with hundreds of thousands fans celebrating the victory of Mexico over Ecuador in their first World Cup knockout game in 40 years. Mexico City's Department of Health said that in the early morning hours of Wednesday, emergency teams treated three unconscious individuals at various locations along the Paseo de la Reforma boulevard where giant screens were set up to show the match. The health authority reported that a woman aged 19 and a man aged 44 both died from suffocation despite advanced resuscitation. A 48-year-old woman died of asphyxiation in the hospital. Later, authorities reported that a man aged in his 30s died after being taken to hospital with severe seizures and bleeding from the gastrointestinal tract. He died from a cardiac event. The crowds grew with every Mexican win as the team advanced through the tournament, which the soccer-mad nation is hosting jointly with the U.S.A. and Canada for the first time in 1986. In recent weeks, Mexico City banned alcohol sales on match days for Mexico and increased the number of screens as well as the distance between them in an effort to improve safety. More than 2 km of Paseo de la Reforma was closed for traffic on Tuesday and covered with giant screens that showed the match. Around a million people gathered, according to the city government. LOCAL REPORTS: CROWD PANIC CAUSED CRUSH The local newspaper El Universal reported the fatal crowd crush was triggered by pyrotechnics that caused panic. People started to run, and some fell and were trampled. Patricia Garcia, 54, a housewife from Mexico, said in the early morning hours of Wednesday that she was 'delighted by the Mexican victory, but that the situation had gotten out of control. "I'm not a fan of excessive celebrations. You can't let others be affected by it. She said, "Freedom has limits and these limits are where someone else's freedom starts." Videos posted on social media revealed chaotic scenes. One video clip, which appears to have been recorded near the Angel monument on Paseo de la Reforma, showed people stuck and unable move as the momentum of the dense crowd pushed them and swayed them. Some clips show groups of fans kicking and punching each other at the same location, and then slipping on the ground, covered in foam, cans and bottles. The Attorney General's Office will investigate what went wrong, and the authorities will evaluate whether any changes are needed ahead of Mexico's match against England in the last-16 on Sunday. She said this during her morning press conference.
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Oil slips as Warsh predicts lower inflation expectations
The index of'stock markets around world' edged up a little bit on Wednesday, as the U.S. head of the central bank said that?inflation -expectations had fallen. Crude oil prices also fell as optimism about U.S. - Iran talks reduced supply concerns. The traders also kept an eye out for any possible Japanese intervention on the currency markets after the yen hit new lows of 40 years against the dollar. Kevin Warsh, Federal Reserve Chair, said that inflation expectations and risks have decreased in recent weeks. Kevin Warsh said that his fellow U.S. Policymakers would decide if they will raise interest rates at their next meeting. He kept his promise to not give forward guidance. His comments have weighed heavily on the dollar. This is because rising expectations for Fed rate increases this year are a factor, since inflation has risen well above the central banks' 2% target. Many analysts still believe that the inflation situation will improve in coming months. Steve Englander, Standard Chartered Bank's New York branch head of global G10 research and North America Macro Strategy, said that there is no evidence that the imbalance between inflation and activity has grown rapidly. Englander said that "you can afford to wait until these longer-term technology trends are played out." What we see is that unit labor costs are incredibly soft, and the Fed ultimately controls this. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) rose by 0.13%, while the euro fell 0.35%, at $1.1381. The dollar's last decline against the Japanese yen was 0.07%, to 162.43. Futures indicate that the Fed will not make any changes at its meeting in late August, but a rate hike is expected in September. The Dow Jones Industrial Average gained 239.04 points or 0.46% to 52,558.24. Meanwhile, the S&P 500 gained 15.04 points or 0.20% to 7,514.40, and the Nasdaq Composite dropped 34.22 points or 0.13% to 26,179.50. The MSCI gauge of global stocks rose 0.61 points or 0.05% to 1,121.07 and the pan-European STOXX 600 fell?0.31%. Europe's FTSEurofirst 300 broad index dropped 10.51 points or 0.41%. Emerging market stocks increased 0.82 points, or 0.05% to 1,723.71. In Asia, Japan’s Nikkei gained 0.6%, after surging by 37% in the last quarter. Strong tech demand lifted sentiment among major manufacturers to an 8-year high. South Korea's index dropped about 2% after a rally of 68% last quarter, driven by AI-driven chip demand. Oil prices dropped on the energy markets as optimism about U.S. Iran talks eased supply worries. Ole Hansen, analyst at Saxo Bank, said: "The current negotiations in Qatar are perceived to be positive and this has allowed the prices to drift even further." "We could even see lower prices." U.S. crude dropped 1.74%, to $68.29 per barrel. Brent was down to $71.35 a barrel, a drop of 2.19% from the previous day. Both are up almost 20% on a year-to date basis despite sharp price drops last quarter. After posting its biggest quarterly drop in 2013 on Tuesday, spot gold rose nearly 2%.
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US bakes in unprecedented heatwave leading up to July 4 holiday
Brad Brooks P.J. Huffstutter, Maria Tsvetkova HILL CITY/CHICAGO/NEW-YORK/JULY 1 - On Wednesday, record-breaking temperatures moved eastward from the Midwest, placing tens of millions under heat warnings that are expected to last through the holiday weekend on July 4, when Americans celebrate the 250th anniversary of the United States. Extreme heat is expected to raise "real-feeling" temperatures from 100 to 115 degrees Fahrenheit (37.8-46.1 degrees Celsius) in much of the region. This will increase the risk of heat related illness among vulnerable populations and threaten to overwhelm power grids that are already stressed by data centers and electric cars. Sabrina Hooper, a mail carrier in Hill City, Kansas (a high plains town located 270 miles east from Denver), was battling the heat just one week into her new job. Hooper, 34 said that the heat was debilitating to her job, which involves walking up to ten miles each day in order to deliver parcels. She says she finds relief in lawn sprinklers. "It's really nice." You can remove your hat, get it soaked, and then put it back on. Hill City, the nation's hot spot, was at 108 degrees for five days straight in 2012. Another record-breaking heatwave hit the region and pushed the heat index to 108. Heat index is a measure of how you feel when you add humidity to the temperature. Michelle Klein, 57 years old, a high-school science teacher in Chicago, began preparing over the weekend for the heat. She filled up her car, did her weekly shopping early, and stocked her refrigerator with cold drinks. She also gave her plants an extra soak. Klein, who went for her evening walk on Tuesday despite a heat index of 103 degrees, said that the basil needed more water. Amy Kaspar, a property investor in the suburbs of the city, received an urgent call from a tenant who's air conditioner only blew out warm air. Kaspar found that the air conditioner was in perfect working order, but it could not cool the unit due to the heat and humidity. Kaspar, a 50-year-old man, said, "With the wind it feels like you're standing right behind a bus exhaust in Chicago." Scientists said that the scorching temperatures in the U.S. were similar to those of western Europe which was recently engulfed by its own record-breaking Heatwave. This event would have been "virtually unachievable" without climate change caused by humans. Through years of research, scientists have proven that greenhouse gas emission makes heatwaves more intense and likely around the globe. New York City only experienced extreme heat on Wednesday morning. By then, the city had already opened hundreds of cooling centres and sent out more than a dozen 'cool vans' equipped with water electrolytes sunscreen and meals to help New Yorkers who were in need of relief. On Wednesday, the air conditioning was turned up to the max at a Harlem senior center. A sign in thirteen languages advertised the facility as a "cooling?center" open to the public. Richard Allman, the director of the senior center, announced that it would be open past its normal hours during the July 4 weekend. He said, "We make sure that this is a place where people can feel comfortable on a hot day." Before the heatwave hit, city officials asked sign operators in Times Square to lower the brightness of their signs to save energy. They also requested that businesses keep thermostats at a maximum of 78 degrees. Con Edison, the city's energy supplier, asked customers to reduce their energy consumption between 2 pm and 10 pm. The city also increased the hours of public pools, opened additional cooling centres in libraries and municipal building, and expanded its street outreach efforts. Reporting by Brad Brooks from Hill City, Kansas and P.J. Huffstutter, Maria Tsvetkova, Joseph Ax and Julia Harte in New York.
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Sources say that China has restricted some Fortescue iron-ore cargoes due to deteriorating talks.
Sources in the industry said that China's state buyer of iron ore has asked some domestic steel mills to not accept certain portside products of iron ore from Fortescue. This is the latest Australian miner to be snared by Beijing's efforts to 'increase' control over the market. Five sources familiar with the matter said that China Mineral Resources Group (CMRG), notified mills verbally on July 15th, they should not accept portside cargoes containing Fortescue’s Super Special Fines or Fortune Fines. These are both lower-grade products of iron ore. The move is part of CMRG’s campaign to assert its control over the way iron ore is entered into the Chinese?market. It follows a months-long dispute with BHP, which ended in April. Fortescue exports most of its iron ores to China, and is still negotiating with CMRG about supply terms. CMRG - and Fortescue - did not respond immediately to requests for comments outside of 'working hours. As of 1503 GMT, the most active August 'iron ore futures' contract on the Singapore Exchange had risen 2.53% to $100 per metric ton after reaching its highest level since June 17, at $101.2 during the evening trading session. As of June 30, a trader who requested anonymity said that Fortescue’s Super Special fines stocks in some major Chinese port cities stood at 7,22 million tons. According to data from Steelhome, this represents almost 5% of the total portside stocks of iron ore. . CMRG told some domestic'steelmakers last month not to discuss with Fortescue a new iron-ore product - Fortune Fines – scheduled for shipments starting in July. Fortescue confirmed that its China president left in June, only four months after taking up the position. BHP announced in mid-April it had ended supply contract negotiations with CMRG. This was the end of a long-running dispute. Beijing then lifted its bans on a number of BHP's products. CMRG, which was founded in 2022, is part of Beijing’s effort to centralise iron ore procurement as well as win better terms from mining giants upstream. (Reporting and editing by Emelia Sithole Matarise and Kevin Liffey; Staff)
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SMM reports that Antofagasta has agreed to spot-indexed sales of copper ore with certain Chinese smelters.
The industry information provider SMM reported on Wednesday that Antofagasta, a Chilean copper miner, has agreed to supply?term copper concentrator supplies to certain Chinese smelters with spot-indexed prices and a floor guaranteed. The reported deal would be a departure from a long-standing practice in which miners sold term supplies for fixed treatment and refinement charges (TC/RC), which serve as a benchmark globally. Antofagasta stated that its negotiations are confidential and it does not discuss them with other parties. The smelters receive a TC/RC from the miners to refine copper concentrate. However, charges on the spot market are incredibly low due to an 'ore shortage. The smelters are now paying for?processing material and there is increased pressure on the benchmark which has been set at zero until 2026. Some miners have already abandoned this benchmark. Chinese smelters resisted Antofagasta’s proposal to switch from spot-indexed pricing to term-supply negotiations at mid-year, arguing that it would reduce price certainty. SMM reported that after Antofagasta demanded the change, both sides came to an "innovative compromise" whereby TC/RCs are linked to an index while also being subject to a floor guarantee. Antofagasta is not allowed to sell?term concentration at TC/RCs that are below a certain level. According to the Argus, spot TCs were minus $126.80 per metric ton by the end of last week. The SMM report didn't say what the floor level would be. Tom Daly reported. Lewis Jackson, Amy Lv and Lewis Jackson contributed to the reporting. Mark Potter (editing)
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US construction spending increases in May but homebuilding is weak
The U.S. construction sector grew in May, despite the fact that mortgage rates were higher due to the Middle East conflict. Census Bureau of the Commerce Department?said that construction spending increased 0.1% on Wednesday after a downwardly-revised 0.3% rise in April. Economists surveyed by predicted construction spending would gain 0.1% following a previously reported increase of 0.4% in April. In May, construction spending declined 1.5% compared to the same month last year. The amount spent on private construction projects remained unchanged in May after increasing by 0.3% the previous month. Residential construction investment increased by 0.3% due to renovations. The spending on single-family housing projects fell by 0.1%. In May, it fell 4.0% on an annual basis. The U.S. Israel war against Iran has boosted?oil rates, which in turn have pushed up mortgage rates and inflation. Data from mortgage finance agency Freddie Mac shows that the average?rate of the?popular 30 year fixed-rate mortgage increased by 50 basis points after the conflict began at the end February. It averaged 6.49 % last week. The spending on multi-family units, which make up a tiny part of the housing market in May, fell by 0.1%. In May, investment in non-residential private structures like?power plants and factories fell by 0.3%. The spending on factory construction fell by 1.3% while power plant expenditures decreased by 0.1%. This is despite an increase in data centers for artificial intelligence. Investments in?public-sector construction projects increased by 0.5% in May, following a similar increase in April. State and local government construction spending increased 0.4% in May, while federal government expenditures jumped 1.3%. This is likely due to the building of immigration detention centers. (Reporting and editing by Andrea Ricci; Reporting by Lucia Mutikani)
Valar Nuclear partners with Nvidia to create a data center that conserves water
Valar Atomics, a nuclear energy startup, announced?on Wednesday that it was partnering with Nvidia to develop a small Utah data center. The companies claim this will demonstrate how computing facilities required for AI can save water.
Valar, a Californian company, announced its partnership with Utah's microreactor plant. The company also conducted a demonstration using Nvidia Blackwell, the latest AI chip architecture designed for data centres. The companies claimed that it was the first time a small reactor has powered a data centre.
Valar is among a group of 10 startups participating in the Department of Energy's reactor pilot program. The goal was to demonstrate that three small reactors could reach criticality by July 4, when a nuclear reaction would be able to "sustain" itself.
Nvidia announced that its latest data centre design, DSX, would be using closed-loop fluid cooling. It claims this method can reduce water consumption for facility-cooling from 2.6 million gallons of water per megawatt annually to 'near zero.
DATA CENTER OPPOSITION GREENERS Concerns?over the U.S. Data Centers' need for water and power have led to a growing backlash.
A recent /Ipsos survey showed that only 1 in 3 Americans approved of the rapid pace of construction of data centers, a topic on voters' minds ahead of the midterm elections scheduled for November 3.
In order to avoid permitting, stakeholder engagement with the public and grid interconnection, companies have sought to generate their own electricity through private or "behind the meter" plants.
The projects are mostly natural gas-based, but some companies have their eyes on small nuclear reactors that could be used to power AI infrastructure.
WHITE HOUSES?PUSHES RACTORS
The administration of President Donald Trump sees the small nuclear reactor as one way to increase?power production. Trump issued executive orders in?May aimed at quadrupling the nuclear deployment.
John Josephakis is a global vice president at Nvidia. He said, "Through the work done with Valar Atomics Nvidia explores how advanced nuclear systems that are waterless and behind-the-meter could support future AI factories designed for scale and reliability required by accelerated computing."
Founder Isaiah Taylor of Valar said that the company is trying to show that nuclear projects can be completed quickly, despite long regulatory obstacles. Valar claims its high-temperature reactor is cooled by helium rather than water.
Valar has joined a lawsuit against the Nuclear Regulatory Commission brought by Texas and Utah last year, arguing it lacks licensing authority for some microreactors or small modular reactors. Valar wants to hand this oversight over to the individual states.
(source: Reuters)