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South Korea's KOSPI reports its biggest drop since early March, as chipmakers slump
South Korean shares fell nearly 11% in their 'worst session for about five months' on Tuesday, as a global chipmaker selloff?hammered SK Hynix, Samsung Electronics and CXMT, while CXMT’s stellar debut in the market heightened concerns about Chinese competition. The benchmark KOSPI fell 732.09 or 10.84% to 6,023.66, its largest daily loss since the 4th of March, when the index experienced a record drop following the outbreak of the Iran War. The price fell by as much as 11.3% in one day and triggered a circuit breaker, the 14th time in history. The price also fell below 6,000 for the first time since last April. KOSPI is down 29% this month, surpassing its previous monthly record of?27% from October 1997. The KOSPI is down 34% since the peak in June of 9,114.55, but it's still up 43% for the year. SK Hynix, a memory-chip manufacturer, fell 14.7%. after its American Depositary Receipts (ADRs), which are listed on the New York Stock Exchange and have dropped below their.original U.S. Offering Price. Samsung Electronics fell 14.4%, its largest daily loss since Oct. 2008. These two chipmakers are responsible for more than 50% of the KOSPI weighting. This amplifies the impact of a sector-wide decline on the market. SK Hynix, Samsung and other companies are expected to release their earnings for the second quarter later this week. The market sentiment was further dampened due to developments in China. This included the blockbuster debut of ChangXin Memory Technologies, (CXMT), and reports that a Chinese firm backed by the state has started producing immersion DUV equipment. The market is more concerned about CXMT's potential to expand its?capacity and develop technology in the future than its current earnings, said Kim Seok Hwan, a Seoul-based analyst at Mirae Asset Securities. South Korea's top regulator of financial services said that if necessary, authorities would consider a limit on leveraged ETF investments for retail investors, since these have increased market volatility ever since they were introduced in May. Retail investors purchased 4 trillion won, while foreigners sold 5 trillion won. Only 36 of the 917 issues traded advanced while 878 declined. On the onshore settlement platform for settling trades, the won was quoted 0.2% higher than before at 1,462.5 dollars. This erased early losses of up to 0.5%. Traders attributed SK Hynix's dollar sales in relation to the sale of its U.S. shares to the gains. (1 dollar = 1,462.2000 won). (Reporting and editing by Cynthia Kim and Jihoon Lee; Subhranshu Sahu and Sherry Phillips)
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France prepares for fourth major heatwave, as crews battle Bordeaux fire
The?southwest of France is bracing for its fourth major heatwave this year, with temperatures soaring and conditions tinder dry. This puts pressure on the crews fighting a massive 'wildfire' in the Bordeaux region. According to Climate Monitor, temperatures in Bordeaux will reach 33 degrees Celsius during the day. This is around 7 degrees higher than the average between 1961 and 1990. "The situation that we are facing today is the worst we've ever seen, the most difficult since the Second -World War," said President Emmanuel Macron on Monday night, after flying to the region. Nathalie Deattre, Senator of Gironde, which includes the city of Bordeaux, stated that fire crews had contained the blaze over night, but it was still a difficult situation. She told BFM TV that Tuesday, "Everything depends on the performance of the firefighters on the ground." France is experiencing a wildfire season unlike any other. The fire area has already exceeded the previous record of 2022. The Landes region, southwest of Bordeaux is covered with pine forests that are highly flammable if they become dry. The fire has destroyed 42,000 hectares. About 220,000 people have been evacuated, including tourists and local residents. The situation in Biscarrosse has improved. About 15,000 people who were evacuated from the town and nearby campsite last week are gradually being allowed to return home. "However, the (positive) development does NOT mean that the risk has been eradicated. There is still a possibility of flare-ups, especially due to weather conditions (winds, droughts, etc.). "It said. Meteo France, the weather agency in France, said that temperatures would increase in the area from Wednesday afternoon to a maximum of 37 degrees Celsius. Reporting by Yves Herman and Manuel Ausloos; editing by Andrew Heavens
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Kumba Iron Ore's first-half profits drop 41%; company targets more sales outside of China
Kumba Iron Ore, South Africa, said on Tuesday that its half-year profits fell by 41%. This was mainly because of a'strong rand and lower prices for the steelmaking ingredient. Anglo American's headline earnings were 13.24 rand ($0.79) per share in the six-month period ended June 30 compared to 22.26 rand during the same time last year. The top African iron ore miner reported a 11% drop in revenue to 30,88 billion rands after the Rand strengthened by 11% against the U.S. Dollar. Kumba reported a marginal 1%?decrease of the average realized price as well as lower sales volumes. Iron ore sales fell 1% to 18.6 million tons in the first half of this year, while cash costs rose a whopping 18%, due primarily to higher costs for fuel, shipping, and raw materials, as a result of the Middle East conflict. Kumba's sales to China - the world's largest buyer of iron ore - fell to 53% in the first half of 2026 from 58% before, as part of the company's diversification strategy. Kumba reported that China's crude steel production dropped?3,1% on an annual basis in the first six months of this year. Kumba's sales of iron ore to?Japan and South Korea, as well as other Asian countries, rose from 21% in the past, while Europe remained at 21%. Kumba declared an interim dividend per share of?7.90 Rand, compared with a payout per share of 16.60 Rand last year.
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Asia markets sell off in a broad scale due to AI fears
The chip stocks in Asia fell on Tuesday due to fears about the AI boom and Chinese competition. Oil prices also dropped, but this did not calm nerves over possible rate hikes by the U.S. as early as this week. South Korea's KOSPI plunged almost 10% to a three-month-low, triggering circuit breakers on its way down. It is now heading for its biggest monthly drop since the Asian Financial Crisis in 1997. The index has lost more than a quarter of its value in the past year. Shares of SK Hynix, Samsung Electronics, and other companies that are facing extra pressure on a market that is being transformed by leverage have suffered losses exceeding 12%. Their stratospheric rise has come to an abrupt end. Nikkei, the Japanese stock index, fell by 4% on Tuesday, reaching a new two-year low. This selloff followed a 2.2% decline in the Philadelphia Semiconductor Index on Monday. Chris Weston, head of research at Pepperstone, said that the market was not being moved by a single red flag, but rather, the combination of nervousness about AI funding, and China's rising as a rival all along the supply-chain. The Information reported that China had begun producing?domestically-developed immersion deep ultraviolet machines, a tool for chipmaking long dominated exclusively by Dutch supplier ASML. ASML's shares fell 8.5% on Monday. CXMT Corp., China's largest memory manufacturer, raised $8.6 Billion on Monday. It ended its first session as China’s most valuable company. Kim Seok Hwan, a Seoul based analyst at Mirae Asset Securities said that the market was more concerned about CXMT's potential?for accelerated expansion to Korean rival companies"?. Nvidia's shares fell 5% overnight, after the Wall Street Journal reported that the company was in discussions to provide approximately $250 billion in financing guarantee for OpenAI in connection with a massive data center project. CXMT shares fell about 3% in Shanghai's bumpy trading, while Kioxia and Tokyo Electron were the biggest losers in Tokyo. OIL SLIDES; US RATE HIT EYED Brent crude's futures continued their nearly 9% drop on Monday, dropping more than 1%, to $87.19 per barrel. This was due to a lull between?hostilities' between the U.S. Donald Trump stated on Monday that the United States and Iran were having "good discussions" and that there was a possibility of a deal. The break in fighting has pushed the benchmark 10-year 'U.S. The yields on Treasury bonds fell by 4 basis points on Monday to 4.64%, but the shorter-term rates barely moved. Traders in Asia were also not keen on lowering yields on Tuesday. The markets have estimated that there is a 38% probability of a Federal Reserve rate hike on Wednesday. The U.S.-Iran conflict, which is driving up the price of crude, is the biggest factor determining the future direction of the global economy. "We anticipate that (the Fed) will adopt a tightening stance this week." The dollar was supported by the expectation of a hike sooner or later. It held the euro at $1.1362 and the Australian dollar below 70 cents. The yen traded at 163.78 per dollar, barely above the four-decade low.?Markets are on edge over Japan's intervention in the currency pair, especially if the Bank of Japan keeps rates on hold and triggers another yen decline. Wizman said that if BOJ communication was not hawkish, and USD/JPY continues to rise, traders can expect an official response. This could include verbal interventions, rate checks or direct FX market interventions, possibly on Friday. (Reporting and editing by Shri Navaratnam, Saad Sayeed and Tom Westbrook)
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Wall Street Journal, July 28,
These are the top stories from?the Wall Street Journal. These stories have not been?verified and we cannot vouch for their accuracy. Johnson & Johnson, a manufacturer of babycare products, has agreed to pay $5.5 Billion to settle outstanding lawsuits alleging that the company's Talc products cause ovarian cancer. The agreement is conditional on 95% participation by the remaining claimants. Iran and Oman have worked to achieve an agreement for the safe passage of ships through the Strait of Hormuz amid a lull between fighting between the U.S. -Kuwait Petroleum signed a $16billion pipeline lease agreement with Kuwait Oil, involving the entire country's export and domestic pipelines. The investors were led by Blackstone, Brookfield, and KKR. Cracker Barrel's CEO Julie Masino has resigned from her position. She will be replaced by David Deno, former Bloomin' Brands' CEO on August 10. Ford has been awarded a Defense Department contract for the development of three truck prototypes that are based on its F-Series pickups. The Pentagon is pushing automakers to help modernize and replenish military equipment depleted from wars in the Middle East, Ukraine and elsewhere. Sazerac, the?cocktail manufacturer of BuzzBallz?, sent a letter to Brown-Forman's shareholders asking them to reconsider their previously rejected $15 billion purchase?offer. Gas cylinder manufacturer Luxfer has agreed to be acquired by Wynnchurch Capital. The company plans to continue as a privately-owned company following the acquisition. (Compiled by Bengaluru Newsroom)
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Gold falls as dollar strength weighs on gold; attention turns to Fed meeting
The gold?prices dropped on Tuesday due to a stronger dollar. Meanwhile, the markets were looking forward to the Federal Reserve’s next policy announcement for clues about the interest rate outlook. Gold spot fell by 0.7% at $4,045.89 an ounce as of 0448 GMT. It had risen as high as 1% Monday. U.S. Gold Futures for August Delivery fell 0.8% to $4 046.20. Dollars held near a month-high, making bullion priced in greenbacks more expensive for holders other currencies. Ilya Spivak is the head of global macro for finance content network Tastylive. The U.S. Federal Reserve is expected to conclude its two-day meeting of policy makers on Wednesday. The Fed is expected to keep interest rates steady at 62%. According to CME FedWatch, 38% of participants in the market expect a rate increase at least 25 basis points. The markets are pricing in a 81% chance of a hike during the September meeting of the central bank. On Monday, President Donald Trump called on the Fed?to lower interest rates. He said the U.S. would have the lowest rate of interest in the world. Trump said that on Monday, the United States was in "good talks" and that there was a possibility of a deal to end their conflict. However, he warned that if the negotiations did not succeed then strikes would be resumed. Saudi Arabia, Jordan, and Iraq reported drone attacks on Sunday, indicating that Tehran was quickly testing the pause of the U.S. campaign. Spivak said that gold will likely rise above $4,200 an ounce if the Fed meeting does not produce language that is "setting the foundation for a rate hike in September". Silver fell by 2% per ounce to $57.23, platinum dropped 0.9% to 1,605.93, and palladium was down 1.6% at $1,270.97. (Reporting and editing by Varun H. K. and Ronojoya Mazumdar in Bengaluru)
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Morning Bid Europe-Chips are jolted by a shift in momentum for AI
Tom Westbrook gives us a look at what the future holds for European and global markets. Chip stocks in Asia fell on Tuesday due to the twin threats of Chinese competition rising and questions over funding and sustainability of AI infrastructure boom. South Korea's KOSPI fell nearly 10%, tripping a circuit breaker. Japan's Nikkei dropped 4.4%. The rally has been so strong that both markets are still the leaders for the year, even though they have now reached multi-month lows. Nvidia fell 5% Monday after a Wall Street Journal article reported that the chipmaker had been in discussions to provide $250 billion worth of financing guarantees for a?OpenAI Data Centre. The report stated that the guarantee would only cover Nvidia inside the center, but that financing OpenAI chips worth up to $35 billion was also being discussed, bringing attention to the circular nature of AI build-out expenditure. Europe's chip leader was also not spared. ASML fell?8.5% following The Information's report that China had begun manufacturing its own immersion deep ultraviolet machines, which are critical to chipmaking and were long dominated exclusively by the Dutch group. Investors are wondering if China's semiconductor sector is moving beyond a catch-up phase to a genuine contender. CXMT soared to the top of China’s stock market on Monday by valuation, causing investors to worry that dominant chip manufacturers may have to share AI spoils more widely. Apple was reported to have asked the U.S. for assurances that CXMT would not be added to a blacklist. The picture of hyperscalers' spending plans will be completed by the earnings at Apple, Meta and Microsoft later this week. Oil prices fell, but that was little help to stocks, or even bonds. They held steady during Tuesday's Asia session, even though crude futures continued their losses. The markets see an approximately 38% chance of a U.S. interest rate increase this week. The following are the key developments that may influence Tuesday's markets: Consumer confidence in France and the U.S. Earnings of Mercedes-Benz (editing by Shri Navaratnam), Barclays, Man Group EssilorLuxottica Logitech Rio Tinto Kering Ford Mondelez Visa NXP Seagate Coca-cola UPS Boeing
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Copper prices fall as rate hike expectations weigh on demand
The copper prices fell on Tuesday as 'lingering bets on an interest rate increase in the U.S. threatened to dampen demand. Crude oil prices also declined as investors assessed a pause in U.S. attacks on 'Iran. By 0300 GMT, the benchmark three-month metric ton of?copper traded on London Metal Exchange had fallen 0.5% to $13,664 per metric tonne. The Shanghai Futures Exchange's most traded copper contract fell 0.14% to 104,800 Yuan ($15.484.86) per ton. The market is waiting for the U.S. Federal Reserve's meeting on Wednesday and the effect of a possible lull in the fighting between Iran and the U.S. Analysts from the?Chinese brokerage Galaxy Futures said that despite the lower crude oil price, expectations of more Federal Reserve rate increases have increased. According to CME FedWatch, 62% of market participants believe that the Fed's interest rates will remain unchanged, and 38% expect at least a 25% increase. Copper market fears that higher rates will dampen economic activity and reduce demand. Red metal prices have risen due to expectations of increased demand from AI infrastructure, electric vehicles and electrification. The jittery stock market also affected traders' appetite for risk. On Tuesday, chipmakers were the main culprits in the Asian stock market's decline. They were worried about the financing requirements of the AI boom. Galaxy Futures analysts stated that "the?market is entering a week of heavy earnings reporting, and sentiment remains cautious." Aluminium prices were down 0.35% at the LME and stable on theSHFE. Disrupted Middle East supply has caused a massive drop in stocks, as well as total stock levels at LME-registered storage warehouses. The lowest level on record since 1998. Nickel?slid 0.16%, and tin fell 1.71%. On the SHFE, nickel dropped 0.77%, tin fell 1.5% and zinc declined 0.5%.
As U.S. heat deaths rise, some proprietors oppose right to a/c
Summertimes in New York City are hard for Anthony Gay and his household. A small, portable air conditioner in his bed room is the only relief they have from soaring temperature levels in their Brooklyn rental.
The remainder of the apartment or condo is literally excruciating to walk through, stated Gay, 40, whose asthmatic son has a hard time to breathe in the heat.
Heat can be a killer. An approximated 350 New Yorkers die prematurely each year due to the fact that of severe heat, according to the city's 2024 Heat-Related Mortality Report. Absence of access to air conditioning in your home is the most essential danger factor in such deaths, it stated.
Yet, throughout the United States, about 12 percent of homes--. or about 12.7 million homes-- had no access to air. conditioning in 2020, according to the most recent government. data. Much more had some air conditioning, like Gay, however not. enough to beat the heat.
Frequently, homes with little or no air conditioning are. inhabited by low-income locals-- typically occupants-- and people of. color, a 2022 Boston University analysis of 115 U.S. city areas. discovered.
That leaves them susceptible as environment change makes. heatwaves more regular, more extreme and longer lasting. Heat. tension now kills more people internationally each year than any other. weather-related cause, according to the World Health. Organization-- and many of these deaths take place inside your home.
A Reuters survey of housing regulations in all 50 U.S. states found that, while almost half of them need property owners. to keep existing a/c systems, none need that. air-conditioning be offered. Nor do rental housing guidelines. describe air-conditioning as a vital service like plumbing,. heat and electricity.
Nevertheless, a little however growing number of U.S. states, cities. and counties have actually embraced legislation that enforce maximum indoor. temperature requirements on rental housing.
In the last 5 years, six U.S. localities, consisting of New. Orleans and Clark County, Nevada, have embraced such cooling. laws, compared to simply seven in the previous 20 years,. according to Reuters' evaluation of property codes and interviews. with more than a dozen policymakers and real estate officials.
Now, America's two biggest population centers-- New york city. City and Los Angeles County-- as well as Austin, Texas, are. proposing new indoor temperature level maximums for renters.
New York is proposing a cap of 78 Fahrenheit (26 degrees. Celsius), and Austin is considering 85 Fahrenheit (29 C), while. L.A. County has yet to formalize its target. New York City and. Austin's proposals would require that proprietors install cooling. systems, given the difficulty of retrofitting old building stock. to permit much better air flow and other passive measures.
The moves are setting up a showdown with effective property owner. lobbies.
Comparable expenses in other jurisdictions-- California, Texas and. Hot Springs, Arkansas-- have actually failed in the last few years after. landlords' groups told policymakers they would require to raise. rents to make up for the expenses of updating home electrical. systems and including a/c.
The California Apartment or condo Association property manager lobby does not. support a cooling mandate till we can discover a method to make certain. that we do not knock out our electrical system and make the cost. so expensive, stated Debra Carlton, the group's executive vice. president of state public affairs.
A 2022 statewide bill died following property manager push back. The. California Legislature rather asked state professionals to craft. recommendations, which were published this June, suggesting an. indoor maximum of 82 F (28 C) for newly-constructed systems only.
A law in New York City may have a much better opportunity as Mayor. Eric Adams made establishing a summer indoor temperature level policy. by 2030 among the objectives for his administration. His office. stays devoted to the 2023 strategy, a City Hall representative. informed Reuters.
A bill proposed in July would require rental homes be kept. at 78 F or lower when outside temperatures hit 82 F or above-- a. regular event during New york city summers.
If authorized, the procedure would impact some 750,000 renters. who do not have air-conditioning, according to Council member. Lincoln Restler, who sponsored the expense.
There's a seriousness to this legislation, he stated. Heat is. the No. 1 environment killer, and it's only worsening.
Restler said the costs would allow 4 years for property owners to. make energy effectiveness and electrical upgrades.
A MATTER OF LIFE AND DEATH
While cooling represent about 4 percent of the. world's overall greenhouse gas emissions, which fuel climate. modification, research shows it likewise conserves lives. A 2016 research study. estimated a 75 percent drop in the variety of U.S. heat-related. deaths on hot days throughout the latter half of the 20th century. after air conditioning was presented, according to findings released in the. Journal of Political Economy.
Heat-related deaths are undercounted internationally,. epidemiologists say. The United Nations, in a report this year,. said that modelled quotes suggest that in between 2000 and 2019,. around 489,000 heat-related deaths took place each year,. with almost half of those in Asia.
In the United States, the Centers for Illness Control and. Avoidance estimates that heat-related deaths have been. increasing, with around 2,302 in 2023 versus 1,602 2. years formerly. Nevertheless, that data only consists of death. certificates that specifically point out heat and is concerned by. lots of experts as a remarkable undercount.
Among the few places to track indoor and outdoor. heat-related deaths is Maricopa County in Arizona, where. temperature levels routinely top 110 F (43 C). In spite of two of its. cities-- Phoenix and Tempe-- passing optimum indoor temperature. laws, the county registered 156 indoor heat-related deaths last. year, a five-fold increase over the last years.
Although the trend is bleak, in 2023 Phoenix and Tempe fared. much better than cities in the county without cooling laws. Indoor. deaths represented 21 percent of Phoenix's heat-related deaths. and 17 percent of Tempe's, compared to a county average of 24. percent - and more than 32 percent in the cities of Scottsdale. and Mesa, public health information revealed.
Record-breaking heat waves in recent years have actually spurred some. brand-new legislation.
Following the 2021 heat dome that hit the Pacific Northwest,. the U.S. state of Oregon in 2022 and Spokane, Washington, in. 2024 approved procedures to limit property managers' ability to stop. occupants from installing their own air-conditioners over concerns. about liability or utility expenses.
But much of America's warmest cities and states are. struggling to pass laws on safe temperatures.
The Arkansas mountain city of Hot Springs in 2015. abandoned a proposal for cooling requirements in rental units after. receiving problems from property manager groups, stated Phyllis Beard, a. member of the city's board of directors.
In an August 2023 email sent out to the board, examined by. Reuters, Hot Springs proprietors stated the proposition would hurt the. most susceptible in our neighborhood by making budget-friendly housing. difficult if not impossible to provide.
Updating a single-family U.S. home to a central. air-conditioning system usually costs between $5,000 and. $ 10,000, according to figures from the American Society of Home. Inspectors, while an in-window unit costs around $400 on top of. electrical upgrades for older homes to support the system. This. can run in between $2,000 and $3,000, the California Apartment or condo. Association said.
And while the Texas cities of Dallas, El Paso and Houston. have set indoor temperature standards, a statewide expense stalled. in 2015 after opposition from the Texas Apartment Or Condo Association,. home representative Sheryl Cole told local media. The city of. Austin is now mulling brand-new guidelines.
In muggy Florida, Democratic State Senator Jason Pizzo, a. real estate developer, said that he had spoken to Florida. proprietor associations and was positive his state would pass an. air-conditioning requirement within the next two years, regardless of. seeing 4 previous efforts fizzle considering that 2021.
Pizzo argued that, with Florida's mold-encouraging. humidity, air-conditioning makes great economic sense, protecting. not only a building's citizens however likewise the structure itself:. air-conditioning is a dehumidifying, home damage-protecting. instrument.
The Florida Home Association, which states it represents. more than three-quarters of home homes in the state, did. not react to an ask for remark.
ENVIRONMENT SHIFT
In L.A. County, the board of supervisors-- its five-member. governing body - is expected to vote later this year on a bill. that might affect the county's 3.4 million families, more than. half of whom are tenants.
There as soon as was a time where we understood that people dying. of the cold inside is something that we needed to regulate,. stated L.A. County manager Lindsey Horvath who advanced the. motion. Lots of U.S. jurisdictions need that rental housing can. fulfill minimum indoor temperatures: California state law. states a minimum of 70 F (21 C).
Now with the manner in which the environment has actually shifted, we also. have to consider those higher, she stated.
By mid-century, main Los Angeles is expected to. experience 3 times more days of temperature levels above 95 F than. it did between 1981 and 2000.
Some California tenant groups fretted that passing laws to. force house upgrades could result in evictions followed by. higher leas-- as the state's eviction law allows landlords to. remove tenants if a home restoration needs an authorization and will. take more than one month or is thought about unsafe. L.A. County landlord associations also said they were gearing. as much as combat, and pointed out factors from costs to liability to. aesthetics.
Badly set up window a/c systems might fall on people,. Daniel Yukelson, executive director of the Apartment Association. of Greater Los Angeles, informed Reuters. He also criticized such. window units as sort of unpleasant.
(source: Reuters)