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Mayor of Kyiv: Russia has hit petrol stations and warehouses in Kyiv
Vitali Klitschko, the mayor of Kyiv, Ukraine, said that a drone struck a petrol station early Tuesday morning. He also added that a drone had also struck warehouses in another part of the city. Witnesses heard an explosion in Kyiv The attack follows a?U.S. Donald Trump stated on Monday that Ukraine had agreed with Russia not to?hit each other's targets. Recently, Russia began targeting petrol stations in Kyiv and expanded the scope of facilities that were targeted. In the last few months, Russia has targeted around 300 petrol stations, mostly in or near Ukraine's frontline areas. In a social media statement, Poland's Armed Forces stated that as a precautionary measure, it had begun military aviation operations to secure its airspace. A regional governor on Telegram said that a Ukraine missile strike?damaged a warehouse owned by the ecommerce company Ozon, in the southern port of Taganrog. Separately, a?industrial facility?in the Samara Region on the Volga River was hit by a drone, said Governor Vyacheslav Federishchev on Telegram without naming this particular industrial facility. A number of large oil refineries are located in the?region. It was not possible to independently verify all the reports. Volodymyr Zelenskiy, the president of Ukraine, said that Kyiv would only support a U.S.-proposed ceasefire between Russia and Ukraine on energy sites if Washington could guarantee that Moscow was truly ready to end its conflict with Ukraine.
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China's oil throughput in August is up for the second consecutive month amid Iran war
China's oil throughput in August?rose for a second consecutive month but was still?6.9% lower than a year ago, according to?data released on Tuesday by the National Bureau of Statistics. In August, the world's largest oil buyer processed 59.07 metric tons crude oil, or 13,91 million barrels per day. This is an increase of 11.2% compared to July. Oil throughput in the first eight months was 456.12 millions metric tons or 13.7 million bpd. This is down 6.6% compared to a year earlier. According to data, China's domestic crude oil production in August rose by 0.8% on the year to a total of?18.43 metric tonne, or 4.34 millions bpd. Beijing does not release information on its reserves. However, calculations that add official crude imports and domestic production, then subtract refinery output, estimated a drop of 639,000 barrels per day (bpd) in August. This was the second largest drop since the Iran War began, following a decline of 936,000 barrels per day?in June. The data also revealed that the crude oil production for the year to date was 146.39 millions metric tons. This is a 0.9% increase from last year. The natural gas production in August increased by 0.8% from the previous year to?21.4 billion cubic meters (bcm). The output for the year to date is 175.7 bcm. This represents a 1.1% increase from a previous year.
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New Hope coal miner in Australia pays out highest dividends since 2022
New Hope Corp, a thermal coal -miner in Australia, declared its 'largest ever final dividend' on Tuesday. This was despite the fact that their annual profit had more than halved and they missed expectations. The shares rose to their highest level in over 3-1/2 years. Rob Bishop, CEO of. "We had a good year and we were able to pay out a large dividend," said he. New Hope announced a final dividend per share of 30 Australian cents for fiscal 2026. This is the highest since 2021 when it was 31 cents and surpasses last year's 15 Australian cents. The company's shares rose by as much as 4.1% in the early trading, reaching their highest level since January 2023. As of 0056 GMT, the broader market was down 0.5%. Sales and production of saleable coal increased by 7.6% and 11.8% respectively. This was due to the ramp-up at its New Acland Mine in Queensland, and the strong performance in the second half of the year at the Bengalla Mine in New South Wales. The annual net profit after taxes fell by 63.4% compared to the previous year, falling to A$161 million ($114.94 millions), the lowest level since fiscal 2021 when A$79million was recorded. Visible Alpha's estimate of A$182.2 millions was also not met. New Hope said that its earnings were negatively affected by a decline of 8.8% in the average realized sales price to A$143.2 per tonne. This was due to unfavourable exchange rate fluctuations, as well as an increase in the percentage of sales with high-ash across the group. The company's Bengalla Growth Project and ramp-up at the New Acland Mine?also contributed to the decline in profits. The company stated that it expects thermal coal prices will be well supported in the medium to long term, due to a shortage of supply caused by ageing assets and a lack of investment in new projects.
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Asian shares fall as oil prices and yields increase ahead of Fed and BOJ meetings
Asian shares struggled on Tuesday, as investors considered Middle East tensions. Industry figures also called for a halt in AI development. Meanwhile, higher oil prices and bond yields heightened caution ahead of 'key' central bank meetings taking place in the U.S. Yemen's Houthis, who are aligned with Iran, launched a new offensive on Saudi Arabia Monday. Riyadh had blamed Iran-backed fighters based in Iraq for an assault on the east-west oil pipeline of the kingdom that could disrupt up to 4% global supply. Gulf Arab states have also delayed planned talks with Iran. Brent crude was up by 1.21% at $106.96 a barrel, while U.S. Crude rose 1.27% to $102,68 per barrel. In a recent note, Yokoo Akihiko, an analyst at Mitsubishi UFJ Bank said that the markets are likely to continue to focus on the possibility that higher crude oil costs could contribute to 'inflationary forces, and in turn, drive interest rates higher. Leading AI figures have called for a'slow down in development of AI technology. This has continued to resonate through the markets, even as U.S. president Donald Trump has played down concerns about misuse. He said that existing U.S. protections are adequate and China would benefit from any doubts regarding AI development. MSCI's broadest Asia-Pacific share index outside Japan fell 0.12%. South Korea's 0.25% drop led the way. Japan's Nikkei index edged up 0.19% after reversing its early losses. Shares of chip-related companies were mixed. South Korea's Samsung Electronics lost 0.2%, while Japan's Kioxia rose 3.3%. Federal Open Market Committee will begin its two-day session later that day. The markets have priced in a 90% probability of a rate increase, which would be the first since mid-2023. Morgan Stanley analysts said in an?address that "while inflation continues to decelerate" recent upside surprises have made the pace of disinflation slower and less convincing. They expect a 25 basis point hike on Wednesday and December. "We can see both arguments for a hike or a hold. However, signs of second-round impacts from energy prices and strong demand linked to AI-related investments, as well as a neutral rate which is temporarily higher and concerns over credibility, mean that the balance of risk now argues in favor of a slightly more restrictive policy." Overnight, the benchmark yield on 10-year U.S. Treasury bonds reached 5% for first time in 2023. Germany's 10-year yield rose above 3.51% to its highest level since 2009, and U.S. Treasury bond yields also touched 5% overnight. Tuesday, Japan’s benchmark 10-year government bond rate jumped back to 3%. Bank of Japan will likely raise its interest rate to 1.25% by 25 basis points at the conclusion of its two-day session on Friday, and signify that more tightening is to come. The Bank of Japan is looking to bolster the yen following intervention that helped move the currency away from a low for 40 years. The dollar index, which measures greenbacks against a basket including the yen, and euro, increased 0.05%, to 99.53. Meanwhile, the euro fell 0.03%, to $1.1543. The dollar rose 0.17% against the Japanese yen to 154.61. Spot gold fell 0.15%, to $4,291.59 per ounce. Spot silver dropped 0.31%, to $63.03 per ounce.
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SB Energy will sell shares worth up to $500,000,000 to Japanese investors as part US IPO
A filing on Tuesday showed that the SoftBank Group-backed Data 'centre developer SB Energy will sell up to $500 million worth of shares to Japanese investors as part a a U.S. public listing. The filing stated that the firm would issue new shares to the Japanese investors and the funds raised would be used for "general operating costs" for the development of data centres, "power generation", and other infrastructure projects. The filing did not disclose the size of the U.S. Initial Public Offering. SoftBank could be looking for a $50 billion valuation for SB Energy. SB Energy's investment prospectus from September reported that Nvidia had committed to investing $1.5 billion at the IPO price in a private placing, while OpenAI was issued warrants valued at approximately $5.5 billion. Investor interest in artificial intelligence led to a flurry of 'public listing' in related firms this year. SpaceX listed in June, and Anthropic is preparing to list in the second half of.this year. Japanese investors?secured a total of $2.2 billion in SpaceX shares at its IPO.
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Interior Secretary Burgum: US wants to issue deep sea mining permits in a few months
The Trump administration announced on Monday that it was close to approving permits to'mine' the deep sea as part of an broader effort to increase U.S. access to the vital minerals needed across the U.S. economy. Interior Secretary Doug Burgum told a G20 gathering in Houston of energy ministers that the permits could be issued within months, as the administration pursues its strategy of "energy add" to expand the supply chains of the country and its allies. Donald Trump, since returning to office in 2017, has taken steps to bolster the deep-sea mine industry. However, he still hasn't issued operational permits to allow it to move forward. Many environmentalists are concerned that seabed mining could lead to irreversible biodiversity losses. The Pacific Ocean, and other parts of the world are believed to have large quantities of polymetallic nodules (potato-shaped rocks) that can be used as building blocks for electronic vehicles, weapons and electronics. Burgum stated that "those nodules we have to vacuum up from the sea floor (are filled with?critical minerals we need." Burgum said that part of the solution is to ensure that we have a diverse, reliable, and affordable supply of essential minerals. In the last 18 months, U.S. exports of critical minerals, especially those processed in China by Chinese companies, have been limited as Beijing limits its exports. This has increased pressure on Washington, which is now urging it to support efforts to increase domestic mining. Burgum responded to Burgum's question about when the federal government could issue permits for deep-sea diving: "Those discussions are taking place right now." He added that "you'll hear more in the coming weeks and months because there's exciting developments on that front." Burgum's Interior Department supervises the Marine Minerals Administration which must approve all?permits for mining?U.S. Territorial waters. The MMA review would begin with a lease to allow private companies to have exclusive access to a part of the seabed. Then, a review process would be conducted to determine if an operational permit was needed. This would include a variety of scientific data. Separately Trump wants the Commerce Department to issue international permits. This could lead to a conflict with the United Nations' International Seabed Authority, which has tried to set standards for more than 25 year. The Metals Company, a privately-held company, and Impossible Metals are among the companies that have requested permits for seabed mining. Other companies have also applied for exploration permits.
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Texas penalizes data centers for violating water laws
On Monday, the 'governor' of Texas, a state that is one of the fastest-growing areas for artificial intelligence infrastructure, instructed'state regulators to penalize any data centers who fail to provide details regarding their water usage. Texas, which has halted new data center connections to the state's?electrical grid, pending an assessment of the facilities' water and power use, amongst other issues, re-examines its regulations for server warehouses. Governor Greg Abbott has directed the Texas Water Development Board to "impose legal consequences" to data centers and large water-using entities that fail to report their water usage. Abbott's office issued a statement saying that "major water users including data centers appear to have violated civil and criminal laws by failing to provide TWDB the required information about water usage." The 'Texas water regulator tries to survey data centres about their 'water use and consumption expectations. The data center will be denied new or renewed environmental permits if it fails to submit the survey by the deadline.
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Interior Secretary: US oil export ban unlikely lower energy prices
U.S. Interior Secretary Doug Burgum stated on Monday that a ban on U.S. fuel or oil exports was unlikely to help lower energy prices for consumers in the midst of the Iran War. Burgum, speaking to reporters at the G20 meeting on energy in Houston, said: "We'd consider an export prohibition if it actually could lower prices. But that's not true." Burgum, a Trump appointee, stated that a ban on the export of oil, gasoline, or diesel could result in retaliatory measures from other countries. This could harm consumers in California, whose energy imports are largely dependent on. Burgum stated, "We stopped exporting products, and then someone said, "We're not going to export to California." Burgum stated that California has already shut down several oil refineries which has contributed to the rise in fuel prices. Burgum stated that California already has the highest gas and diesel prices in the nation due to their policies. We don't want to make it worse. The Trump administration has run out of options to reduce prices for diesel and oil, which recently reached a record-high above $6 per gallon, and are even higher in California. The White House is considering how it can use the Cold War Defense Production Act in order to increase U.S. refinery capacity.
McGeever: The world braces for the escalation of Trump's Canada Tariff Stand-off
The renewed trade spat between U.S. president Donald Trump and Canadian prime minister Mark Carney occurs at a critical time for both North American nations - as well as the global economy. Mistakes between the G7 neighboring nations could have wide-ranging effects on the economy. After bilateral talks broke down on Friday, the Trump administration imposed 50% duties on a range of Canadian products on Saturday. These 'levies' may seem modest at first glance, as they apply to just?5.5%, or $20 billion worth of goods, that Canada exports to America. Oxford Economics says that if all else is equal, this will increase the U.S. tariff rate on Canadian imports from 5.1% to 6.9%. This is a small issue. The potential for an escalation of violence and its damaging effects is high. Canada is America's largest single trading partner, surpassing China. Total trade between the countries reached $715 billion in 2013, according to the U.S. Census Bureau. Canada also bought more U.S. products and services last year than any other country. Both sides appear to have already dug in. Carney has promised dollar-fordollar retaliation and Trump announced on Monday that 50% tariffs will be imposed on Canadian vehicles, trucks, and automotive parts on January 1 if a deal is not reached. A prolonged spat could cause serious damage to Canada's economy and even trigger a recession. The U.S. consumer and business community could also be affected by the spat, whether it is through higher prices, lost exports or increased inflation.
The regional impact is the greater risk to the global economy.
USMCA UNDER THREATEN
Trump's battle with Canada may signal the end of America's largest trade agreement, the U.S.-Mexico-Canada Agreement. Mexico is America's biggest trading partner. The total value of goods traded between the two countries reached $872 billion in 2017. USMCA is the revised version 1994's North American Free Trade Agreement. Trump decided on July 1, not to renew the agreement, but it will be subject to annual reviews. Talks are still ongoing. The pact is likely to gradually wind down unless the three countries reach an agreement on new revisions. It will then be replaced most likely by bilateral agreements. This would add more uncertainty and complexity in the future of transshipment and investment as well as product sourcing. Trump's comments on the USMCA renewal are not exactly inspiring confidence. "I don't care. "I don't want to" is what I really mean. I'd prefer to be independent. Mexico and Canada are dependent on us. We don't require them. They are important to them. "It's not important to us," Trump said on Fox News, July 28. Trump has often backed down from his threats in the past 17 months, but the unraveling USMCA could threaten U.S. manufacturers, so he is unlikely to throw it out. The resurgence of tensions between the U.S. and Canada increases the probability that this will happen. It could lead to increased inflation, job losses, higher prices, longer supply chains and more investment uncertainty.
Spillover Potential
The spat between the U.S. and Canada could send a signal to other U.S. Trade partners.
Carney is fighting for Canada's autonomy and seems to be willing to sacrifice increased trade friction to do so. But the Mexican president, Claudia Sheinbaum, has chosen the opposite approach, choosing to reduce friction with Trump to gain what she hopes to be more access for Mexican businesses to the U.S.
Other countries are watching. It is not yet clear which approach will work. Carney's success in rebuffing Trump's aggressive tactic could further reduce the president's already reduced tariff power. In February, the Supreme Court struck down Trump's sweeping import tariffs. This forced the administration to use alternative legal justifications for imposing import duties. Trump may also want to make an international splash to show off America's global power, especially with his approval rating at record lows ahead of the November midterm elections and the Iran War still a stalemate. He may decide to stay true to his principles and "call Carney's Bluff" because Canada is more vulnerable.
Sheinbaum may look more intelligent, but if the end result is a USMCA that has been severely weakened, everyone could lose. The latest flare-up occurs at a time when the world is facing a number of challenges. The yields on long-dated debt are 'near multi-decade-highs in the developed world.' The U.S.-Iran War is 'approaching its six month mark. It's not the right environment to put one of the largest and most important supply chains in danger.
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(source: Reuters)