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UN Chief calls on AI companies to be transparent about environmental costs
On Tuesday, the United Nations urged major artificial intelligence companies to disclose their full environmental costs and use renewable energy in their data centres. He also launched a transparency project for the sector. Environmental groups have criticized the rapid growth of data centres to fuel AI for their excessive energy and water use and lack of transparency. In a speech at London Climate Action Week, U.N. Secretary General Antonio Guterres stated that by 2030 they could use enough power to satisfy the basic needs for all 1.3 billion sub-Saharan Africans for an entire year. As he launched the U.N. AI Environmental Transparency Initiative, he called on AI companies to measure and?disclose? their water, carbon and lands use impacts as well as commit to powering data centres with'renewable energy' by 2030. He said that if AI is going to be a part of building a better world, it has to be open about the costs it incurs now. AI firms currently rely on voluntary net zero commitments and targets for renewable electricity to decarbonise operations. Many are also turning towards gas or touting the nuclear power source as a new energy?source. Guterres stated that the world is still not on track to reach global climate goals, and criticized voices who call for increased fossil fuel use. He said that deploying more renewable power projects to electrify buildings, transport and industry was one of the fastest ways to reduce emissions and stop relying on imported fossil fuels. CALL FOR ACTION ON METHANE Guterres launched an action call on methane emission, which included asking fossil-fuel companies to fix any leaks and stop flaring routinely. He said that methane, a powerful greenhouse gas, is responsible for around a third of the current global warming. Guterres announced that he will convene world leaders ahead of the U.N. Climate Conference (COP31) in Turkey will help to drive forward a just transition away from fossil-fuels. (Reporting by Susanna Twidale, Editing by Raju Gopikrishnan).
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European shares fall on Fed hike bets and tech drag
European shares dropped at the opening of trading on Tuesday as fears about increased corporate spending in?AI and expectations for imminent rate?hikes from the Federal Reserve dampened sentiment. Most sectors in Europe are trading down, as the pan-European STOXX 600 fell by?0.89%? to 633.61 at 0721 GMT. The tech sector performed well in Europe, but the global trend was positive. As borrowing costs rise, companies that rely on debt to fund their spending will be under pressure. Asian stocks fell sharply as concerns about Middle East supplies eased and were overshadowed by the tech-driven weakness. South Korea's Kospi Index plunged almost 10% at closing. According to CME Group’s “FedWatch Tool”, traders expect the Fed to raise interest rates by 50 basis points total by the end this year to combat the inflation pressures caused by higher energy prices. According to LSEG data, markets are still betting that the European Central Bank (ECB) will increase borrowing costs another 25 bps this year. This is despite the fact that President Christine Lagarde had downplayed the possibility of a second-round effect on inflation? on Monday. Basic resources, which fell 3.3%, was followed by miners Fresnillo, and Hochschild, who each dropped more than 6%, following the decline in precious metal prices. European tech stocks fell 2.6% on Monday, following weakness in Asia. Aixtron, a semiconductor equipment manufacturer, and Infineon, a chipmaker, both fell by 3.8% and 4.8% respectively. Signify, the largest lighting company in the world, has dropped 15.6% since it updated its strategy. It now aims to achieve an adjusted EBITA of 10% by 2029. Heineken shares rose by 1.6% after the Dutch brewer named Rafael Oliveira as its new CEO. He replaces?Dolf Van den Brink who quit the company earlier in the year due to a slump in industry sales. Reporting by Utkarsh hathi and Johann M Cherian from Bengaluru, editing by Janane Venkatraman & Mrigank Dhaniwala
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Iron ore reaches multi-month lows due to rising supply and tepid China Demand
Iron ore fell to a'multi-month-low on Tuesday. This was due to the prospect of 'increased shipments by major suppliers as we approach the end of the second quarter, and the seasonally low slackening'steel demand. Iron ore, the most traded contract at China's Dalian Commodity Exchange ended daytime trading 0.54% lower than its previous closing price of 738.5 Yuan ($108.91). It reached its lowest level since July 9, 2025 at 734 Yuan during the session. By 815 GMT the benchmark July iron ore price on the Singapore Exchange had fallen 0.7% to $97.55 per ton. This was its lowest level since February 25. For a fourth consecutive session, the contract has been trading well below an important psychological level of $100. The miners will be increasing their shipments to meet the?guidance target this month. Analysts said that this coincides with a seasonally lower Chinese demand. This could lead to a 'pile-up' of portside inventories, which will put pressure on the price of steelmaking ingredients. Analysts at broker Maike Futures also said that the macroeconomic data from China was not encouraging, especially the retail sales which dropped for the first time since over three years. They expect the steel consumption to be affected, they added. Energy prices and freight rates have also fallen due to progress in the peace talks between the United States of America and Iran. Iron ore prices were resilient despite a lacklustre demand, due to rising?freight costs and input costs triggered by energy price spikes caused by the Middle East conflict. On gloomy demand outlooks, coking coal and other steelmaking components have extended their declines, falling by 1.85% and -4.13% respectively. The benchmarks for steel on the 'Shanghai Futures Exchange' were generally weaker. Rebar fell 0.35%; hot-rolled coils dropped 0.27%; wire rods lost 0.47%; and stainless steel dropped 1.49%.
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Asia shares and oil fall as markets revalue Fed expectations
The U.S. lifted sanctions against Iran on Tuesday, and Asian stocks and oil prices dropped. Traders were also concerned about the rising expectation that 'the Federal Reserve could take more aggressive actions?to combat inflation later this year. S&P 500 futures fell 0.9% while MSCI's broadest Asia-Pacific index outside Japan dropped 2.9%. Brent crude fell 1.22% to $76.25 per barrel. The Nikkei index in Japan fell 3% while the Kospi index in South Korea plunged 8.1%. Chris Weston, research director at Pepperstone Group Melbourne, said: "These markets are anything but dull." "The former generals in the market seem to have lost momentum and investors are now rotating into other parts of the market which are more defensive, are less AI-focused, and offer'more predictable cash flow. Early European trades showed the Euro Stoxx futures down 0.96%. German DAX Futures dropped 1% and FTSE Futures were?down 0.95%. Wall Street stocks fell overnight. The S&P 500 was down 0.4%, and the Nasdaq Composite dropped 1.3%. Megacap technology?stocks such as Alphabet, and SpaceX were the main culprits. Oil prices fell more than 3% after U.S. Vice President JDVance announced that progress had been made with Iran in the talks and that the Strait of Hormuz is open. The Yen is nearing a 40-year low The yen is flat against the US dollar, at 161.665, and has been nearing its lowest levels in over 40 years, after an overnight volatile session in the U.S. Satsuki Katayama, Japan's Finance minister, said that she met with U.S. Treasury secretary Scott Bessent online a day earlier to discuss the global financial markets. Concerns are growing over currency fluctuations. The British pound fell 0.1% to $1.3232 after British Prime Minister Keir starmer announced on Monday that he would be resigning. This will pave the way for what is expected to a smooth transfer of power from Andy Burnham, who has been leading in the polls. The U.S. dollar index, which measures the strength of the greenback against a basket six currencies, rose by 0.07%, to 101.08, near its highest level since May 2025. The traders are struggling with the expectations of an accelerated rate hike schedule by a more aggressive Fed, under the leadership and direction of Kevin Warsh. Fed funds futures price an implied 54% chance of at least two 25 basis-point increases before the end the year. This compares to a 15.2% probability a week earlier, according to CME Group's FedWatch. The yield on the 10-year Treasury bond of the United States fell by 0.61 basis points, to 4.501%. Gold dropped 1.75% to $4118.55 per ounce. Bitcoin fell 1.56% to $63,368.73 while ether dropped 1.17% to 1,712.74. (Reporting from Gregor Stuart Hunter, Singapore; Additional reporting from Rocky Swift, Tokyo; Editing done by Jacqueline Wong & Jamie Freed).
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Sources claim that Indian Oil did not receive any bids for the ships needed to transport Gulf cargoes.
Two sources with knowledge of the issue have confirmed that Indian Oil Corp. has received "no bids" in the tenders for 'charter vessels' to lift crude oil and liquefied petrochemical?gas from ports within the Strait of Hormuz. Last week, India's largest refiner and fuel retailer floated three tenders for chartering a very-large gas carrier (VLGC), an extremely large crude carrier, and a Suezmax. Indian state refiners buy most of their oil and LPG from Middle Eastern producers free-onboard. A VLCC carries about 2 million barrels of oil. And a VLGC holds 45,000 metric tonnes of LPG, a mixture of propane and butane that is mainly used as cooking gas in India. A Suezmax can carry about 1 million barrels of crude oil. "Nobody wants to risk going into the Strait yet." "Most ship owners are waiting and watching for clarity regarding the terms of getting into the Strait," said a broker. Indian Oil wanted to transport about 45,000 metric tons of LPG from the ports of Ras Laffan, in Qatar, Mina Al Ahmadi, in Kuwait or Ruwais, in the UAE, between June 30th and July '4. The refiner wanted to charter a VLCC for oil deliveries from Mina Al Ahmadi in Saudi Arabia between June 28 and 29. It also wanted to hire a Suezmax to load cargo from Ras Al Khaffji port on the west coast of India between June 29 and 30. (Reporting and editing by Raju Gopikrishnan; Nidhi verma)
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Gold drops as dollar remains firm amid Fed rate hike expectations
Gold prices fell more than 1% on Tuesday due to a stronger?U.S. ?dollar on the expectation of a Federal Reserve rate hike this year. Investors also assessed U.S. As of 0548 GMT, spot gold was down by 1.7% to $4,119.13 an ounce. U.S. gold contracts for August delivery dropped 1.5% to $4137.10. Tim Waterer is the chief analyst at KCM Trade. He said that while gold had benefited from lower oil prices, it was not getting any help from the U.S. dollar, which continued to rise on expectation of Fed rate increases. Gold is less affordable for those who hold other currencies as the dollar has remained near its one-year high. After the first round of talks in a new peace agreement, the United States lifted sanctions against Iran for 60 days starting Monday. Meanwhile, officials in Lebanon reported that fighting had slowed down under the agreement. JD Vance, the U.S. vice president, said that talks with Iranian officials held in Switzerland laid a solid foundation for a peace deal. Iran however denied having begun to discuss its nuclear program. Chicago Fed President Austan Goolsbee stated that the labor?market is stable and that his focus now is to determine whether the too-high rate of inflation will "remain that way" or "recede", as the effects from high tariffs diminish, and if there's a resolution in the Middle East conflict. CME FedWatch Tool shows that traders now expect an 88% probability of a rate increase in December. This is up from 61% prior to the Fed meeting held last week. Investors are watching U.S. The Fed's preferred inflation gauge, Personal Consumption Expenditures, is due to be released later this week. This data will provide further monetary policy clues. Silver fell by 4% at $62.59 an ounce. Platinum dropped 2% to $1.644.75, while palladium declined 2.3% to $1,236.50. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
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It won't be quick or easy to unravel the "tangled web" of Iran sanctions
Tehran will gain billions from the 60-day reprieve of U.S. Sanctions announced on Monday. However, unwinding four decades of restrictions could take many years. The question is whether a U.S. interim deal with Iran will translate into lasting economic benefits, given the complexity of dismantling sanctions that encompass U.S. law, international measures, and private sector risk concerns. Since the late 1970s, the United Nations, U.S., and European Union have imposed "sanctions, trade embargoes, and frozen assets" over Iran's nuke program, human right violations, and support of militant groups in the region. According to a memorandum signed last week by the U.S., Iran, and other countries, Washington will begin to abolish all sanctions in accordance with a schedule that is to be finalized within 60 days. This period can be extended. The U.S. Treasury Department issued a temporary license on Monday allowing production, delivery, and sale of crude and petrochemical products and petroleum products with Iranian origin until August 21. If the remaining sanctions are lifted, it would be a dramatic change in U.S. Middle East policy. The U.S. has been focusing on "reducing Iran's influence" and using financial pressure to weaken the theocratic regime. This would be difficult as well, since it would require executive action in some cases, congressional approval in others, and close coordination with other countries and the U.N. that have implemented their own "sanctions". After decades of restrictions, companies could also be wary. Juan Zarate said, "You've got this complicated nest of sanctions. It's not only executive orders; it's also congressional sanctions." Zarate was the deputy national security advisor for combating terror under George W. Bush. CONGRESS IS SKEPTICAL Washington sanctioned Iran for the first time in 1979 after students from the revolutionary movement seized and held hostage diplomats at the U.S. Embassy in Tehran. Since then, Congress passed half a dozen laws on sanctions and the presidents issued executive orders regarding Iran's nuclear programme and its support of groups that the U.S. considers terrorist organizations, including Hamas and Hezbollah, as well as?Yemen’s Houthis. According to Treasury data, since early 2025 the Office of Foreign Assets Control of the Treasury has sanctioned more than 1,000 individuals, vessels, and aircraft. Jeremy Paner said that OFAC would need at least a year to delist thousands of entities. He is a former U.S. sanction official and a partner in the law firm Hughes Hubbard & Reed. The President Donald Trump has the power to revoke executive orders on Iran. However, some measures, such as sanctions against Hamas and Hezbollah, are required by law. They will need to be amended or removed by Congress. His Republican colleagues have already been very critical of his interim agreement. Matt Zweig is the managing director of FDD Action's lobbying arm, and he says that it would be hard to undo 40 years of sanctions. Zweig, an ex-aide to the House Foreign Affairs Committee, said that removing layers of sanctions would be like peeling off an onion. It would expose the administration to not only legal complications but also political risks. Some estimates suggest that the license granted on Monday may be worth as much as $3 billion to Iran in two months. Edward Fishman, senior Fellow at the Council on Foreign Relations, says that this could grow to "at lease tens or hundreds of billions" of dollars if it were made permanent. This would erase a discount on Iranian crude oil, allow Tehran to sell its oil to other buyers than China, and increase exports. China buys 90% of Iranian crude oil despite sanctions. The new license, which is more expansive than the one issued last March, covers not only oil and petroleum products but also banking, transportation, and insurance related to oil trade. This will give Tehran easier access?to their revenues. There are a lot of thorny questions involved," said Stephanie Connor. She is now a partner at Holland & Knight and a former OFAC employee. She added that lifting the sanctions could result in money flowing to groups which the U.S. views as a threat. "Are you really going to allow money to start flowing into Iran's Islamic Revolutionary Guard Corps?" She asked, referring to the powerful paramilitary group that the U.S. designated as a terrorist organization. WARY COMPANIES Banks, oil companies and insurers are going to face new regulations, stricter due diligence, and sanctions-evasion risk? tied to Iran's links with China, North Korea, and Russia. The EU, Britain, U.N. and other sanctions remain in place. Zarate explained that "we've beaten up the markets with the risk of dealing with Iran or Iran through the market, so now you can't just flip a switch to say, 'Oh it's OK to do business? with Iran'." The Justice Against Sponsors of Terrorism Act of 2016 allows victims of terrorist attacks to sue companies and investors for assisting designated groups. This act is not likely to be repealed. According to Brett Erickson of Obsidian Risk Advisors, a principal, such risks may cause companies to avoid working with Iran in order to avoid legal and reputational risks as long as Iran's government is still in power. He said that he would not be able to make multi-billion dollar pledges until the situation was more stable and firmly cemented. "There's a long road ahead." (Reporting and editing by Don Durfee, Howard Goller and Andrea Shalal)
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Orion CMC is in advanced talks for three Asian partnerships
Executives have revealed that Orion Critical 'Mineral Consortium is in advanced talks to establish three new public-private partnership in Asia as it looks to fund a?global? pipeline of $20 billion opportunities. The consortium will form a third leg of investment in Asia to complement the $1.8 billion raised last year by the group to improve access to critical minerals such as copper, lithium and rare earths. The project is being led by Orion Resource Partners a mining-focused private equity firm, and backed up by the U.S. International Development Finance Corporation and Abu Dhabi’s sovereign wealth fund ADQ. Orion Resource Partners CEO Oskar?Lewnowski? said that there are three "fairly advanced" sets of discussions to add Asian counterparts to the list. He said that the U.S., the Middle East, and Asian investors were all progressing well. However, he added, "We would love to have a third leg of investors based in Asia." Other potential partners include sovereign wealth funds and government agencies as well as original equipment manufacturers. Prior to this, it was not reported that Asia would be the next "major" investment destination of the consortium. The impending partnerships as well as the size of the investment expected beyond the previous target of $5 billion had also not been disclosed. He said that the 'push' comes from an increasing demand for critical minerals, which is driven by data centres, hyperscalers and continued urbanisation. Lewnowski stated that the expansion of infrastructure will require approximately $2.4 trillion by mid-century. This includes at least $800 Billion over the next 15 Years to bring projects on line. Copper production alone must double by 2050. Banks have withdrawn from pre-revenue financing of projects, resulting in a funding gap. The amount of money needed is enormous. Lewnowski stated that to activate this kind of pipeline we will need to mobilize all our forces. The world's untapped mineral supply is largely concentrated in emerging economies while the demand for minerals is concentrated in developed economies. This creates what executives have described as a "political push and pull" over where and how new mines should be developed. ASIAN OPPORTUNITIES Orion, based in New York, is positioning itself to be an alternative financing partner for Chinese investors and trading companies. It targets?mid-sized mining groups rather than major mining firms. John Dorian is a portfolio manager for Orion Resource Partners in Asia. He said that the growth was not with major mining groups because they have under-spent so long. He said that the firm saw significant opportunities in Southeast Asia where a number of multi-billion dollar?critical mineral projects were under development. There are?probably 5 in Indonesia... He said there were probably some in Vietnam, a few in the Philippines and a lot in Australia. Orion also assesses opportunities in Central Asia in Kazakhstan and Uzbekistan, in Africa’s copper belt in Morocco, Namibia, Mali and South America in Brazil, Argentina, and Chile.
UN document reveals that the US is attempting to undermine global efforts for development finance
A document from the United Nations that was seen by revealed that the United States wants to weaken an international deal designed to help developing countries who are struggling with climate change, among other things.
The Trump administration is against draft reforms to the global financial system that are intended to assist developing countries. This includes taxation, credit rating and fossil fuel subsidy. The administration wants to remove all mentions of "climate", "gender equality", and "sustainable development".
The document, which was previously unknown, sheds light on the Trump administration's efforts to impose an "America First", including opposition to efforts that slow climate change and promote diversification, on institutions at the core of solving global systemic crises.
The 4th International Conference on Financing for Development, which takes place every decade, will be held in Seville, Spain in June. Its aim is to influence the strategic direction taken by the development finance institutions around the world. At FFD3, countries agreed to expand tax cooperation so that developing nations could set the rules. As of May last year, more than 140 countries are involved.
Tom Mitchell, Executive Director of the International Institute for Environment and Development said, "This conference aims to bring together world leaders and set the rules and priorities for funding development goals in the next decade."
The U.N. Secretariat assisted the Mexico, Nepal and Zambia Permanent Representatives to compile the April 11 draft, which is annotated by the 193 countries involved in the discussion.
The U.S. delegation said that the FFD4 draft was prescriptive, too long and had a lot of prescriptive language. They also denounced the "ever-widening definition" of sustainable development.
Jonathan Shrier, acting U.N. Economic and Social Council Representative for the United States, said: "The international financial organizations have independent mandates and authority. We do not support any attempts to impose U.N.-style directives on their priorities or activities."
The United Nations does not have direct control over multilateral development financing institutions.
The document was a response to the U.S. Treasury secretary Scott Bessent's pushback against the ongoing changes at both the World Bank and International Monetary Fund for the fight against Climate Change. It also showed that the U.N. reform prescriptions were being watered down.
The document reveals that the U.S. is looking to remove the reference to "a package of reforms" in relation to sustainable development. It wants to replace the line that promises to "commit reform to the international financial infrastructure" with the pledge to "recognize and enhance its resilience to current and future crises and challenges."
These changes in language can be used to support future actions or inactions in discussions by indicating the level of commitment.
In an email, Florencia Nino, spokesperson for the U.N. secretary-general Antonio Guterres said that the Secretary-General acknowledged the need to overcome many challenges before the conference. However, he urged all countries to "be at the table focused on solutions in Sevilla," she added.
Both the Treasury Department and State Department declined to comment. The White House has not responded to a comment request.
The U.S. position on development is tougher now under Trump. However, the document of negotiations shows that it still supports efforts such as developing countries working closer with the private sector and fostering financial literacy and innovation.
CLIMATE CHANGE
The global reforms aim to help the poorer nations better cope with climate change-related weather disasters and boost economic growth by using low carbon energy instead of traditional fossil fuels.
Donald Trump, the president of the United States, has withdrawn from UN climate agreement in Paris. He also slashed U.S. Foreign Development Aid by more than 80%. This was part of an overhaul government led by Elon Musk.
The U.S. has objected to several areas in the FFD4 document, including a call to countries to investigate "global solidarité levies", which could include taxes on high-polluting activities or super-rich people to finance sustainable development.
The levies, if included, could be discussed in the U.N. tax negotiations this year. They would also support a taskforce led by France Kenya and Barbados, which aims to create such taxes for smaller groups of countries.
Russia, Saudi Arabia, and China are also among the countries that object.
The document also shows that the U.S. wants to remove a paragraph that calls for companies to pay taxes to countries where economic activities occur; a paragrah on helping developing nations improve tax transparency and another one on phase-out inefficient fossil fuel subsides.
The FFD4 document indicates that the U.S. is looking to remove a paragraph about reforming the rating system.
It showed that rating agencies should be more lenient with nations who voluntarily restructure debt in order to invest in environmentally friendly projects.
Documents show that the U.S. is also against a commitment by countries to receive "adequate funding and uninterrupted at appropriate terms for social protection, and other essential social expenditures during shocks and crisis," according to the document.
The draft agreement is likely to be revised as countries continue to negotiate in May before reaching consensus on the final document by mid-June.
The U.S.'s position places pressure on other nations to accept a weaker agreement, as the talks are aimed at adopting a deal through consensus. (Reporting and editing by Dawn Kopecki and Rod Nickel in Washington Additional reporting and editing by David Lawder in London and Daphne Psaledakis and Kate Abnett in London)
(source: Reuters)