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BlackRock says antitrust claims are "unprecedented" and "unsound".
BlackRock's attorney called Republican-led state antitrust claims "unprecedented and unsound" on Monday, and claimed that they failed to demonstrate how firms' involvement in industry climate groups affected market competition. Gregg Costa, an attorney with Gibson Dunn, spoke about the antitrust lawsuit brought by Texas and other states against BlackRock. The result could have major implications on how companies that together manage $27 trillion in passive and active funds manage their investments. States claim that the climate activism of fund firms pushed coal companies to cut production and increase utility bills. The companies that continue to hold fossil fuel stocks say their proxy votes have hardly changed, and there is no proof they pressured companies to reduce production. Brian Barnes, an attorney for Cooper & Kirk and speaking on behalf of the states said that even bringing environmental issues to attention could have a positive impact. Barnes stated that "jawboning" by the defendants about decisions regarding market strategy could influence the output decisions of the coal company.
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Dollar edged down, stocks rise as US-China discussions in focus
The dollar fell on Monday as the United States and China began talks in London to settle a trade conflict between their two largest economies. The trade dispute has now expanded to include restrictions on rare earths. This could cripple global supply chains and slow growth. The talks will need to continue for a while before we can decide if there is any progress. Most investors are still hopeful for positive results, said Peter Andersen of Andersen Capital Management. Wall Street saw the S&P 500, Nasdaq and the S&P 500 Tech sector all rise. The Dow fell modestly, with weakness at Travelers and McDonald's. Morgan Stanley downgraded McDonald's to "equal weight" rating. The Dow Jones Industrial Average dropped 164.43, or 0.38 percent, to 42 598.44. The S&P 500 rose by 4.70, or 0.08 percent, to 6,005.06, and the Nasdaq Composite gained 91.29, or 0.47 percent, to 19,622.33. The MSCI index of global stocks rose by 1.56 points or 0.17% to 893.52. This was the fifth time in six that the index had gained consecutively. The STOXX 600 Index fell 0.08% in Europe. The U.S. Dollar fell against most major currencies Monday as caution in anticipation of trade talks offset optimism about a better than expected U.S. Employment Report on Friday. The U.S. economy data revealed that wholesale inventories in April increased amid a stockpiling in prescription medications in anticipation of tariffs by the Trump administration. Investors will also be watching Wednesday's U.S. Inflation data, which may change expectations about the timing of rate cuts from the Federal Reserve. According to LSEG, the market currently prices in a 62% probability of a rate cut by at least 25 basis point at the central banks September meeting. Fed officials are in an "all-out" period before the 18th of June policy decision. The dollar index (which measures the greenback in relation to a basket of foreign currencies) fell 0.04%, reaching 99.07; the euro rose 0.11%, hitting $1.1407. U.S. Treasury Sec. Scott Bessent will be joined by Commerce Sec. Howard Lutnick, and Trade Rep Jamieson Greer to represent Washington at the talks with China. U.S. president Donald Trump announced this in a post on social media. China's Foreign Ministry announced Vice Premier He Lifeng would be in Britain to attend the first meeting of China-U.S. Economic and Trade Consultative Mechanism. The yields on U.S. Treasury bonds were not much different at the beginning of the week after the Friday jobs report drove yields higher. The yield on the benchmark 10-year U.S. notes dropped 1.8 basis points, to 4.492%. U.S. crude climbed 1.02% to $65.24 per barrel. Brent rose to $67.04 a barrel, up by 0.86% for the day. This was due to hopes that a trade agreement could improve the global economy outlook.
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Gold gains in the spotlight of US-China trade talks
The gold price edged up on Monday as a result of a weaker dollar. Market participants were also keeping a close watch on the ongoing U.S. - China trade talks. Gold spot rose 0.3%, to $3320.15 per ounce at 0956 ET (1356 GMT), from its previous session low of over $1,300. U.S. Gold Futures dropped 0.1% to $3341.90. The U.S. Dollar Index remained low, making the greenback price of bullion more affordable for holders of other currencies. Senior U.S. officials and Chinese officials will meet in London on Monday to discuss the tit-fortat tariffs that each country has imposed this year, along with other restrictions. Last month, both sides agreed on a temporary pause to provide some relief to investors. Bart Melek is the head of commodity strategy at TD Securities. I think that a weaker economic environment, likely rate cuts, and a lower risk appetite are driving people into gold. "And, of course, expectations of higher inflation." Russia also said its forces had gained control of additional territory in the east-central region Dnipropetrovsk of Ukraine, where it said the fighting was partly intended to create a "buffer area." Gold becomes more appealing during times of geopolitical or economic uncertainty. Gold is also a non-yielding investment, so it tends to do well in low interest rate environments. Investors are also awaiting the U.S. Consumer Price Index data, due Friday, in order to gauge the economy and predict Federal Reserve rate cuts. The data released over the weekend shows that China's central banks added gold to their reserves for the seventh consecutive month in May. Spot platinum rose 3.1% to $1.205.01, its highest level since May 2021. Silver spot rose 1.3%, to $36.41 an ounce. Palladium rose almost 3%, to $1,077.59. (Reporting by Sarah Qureshi in Bengaluru; Editing by Sharon Singleton)
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Investment of 3 billion Euros by Development Banks in Ocean Plastics Fight
A group of development bank plans to invest 3 billion euros ($3.4billion) by the end the decade to tackle plastic pollution in the ocean, increasing the scope and financial power of what is still the biggest effort in the world to fix this growing problem. According to the United Nations, if current trends continue, plastic waste entering water could triple from 11 million tons to 37 millions metric tons annually by 2040. The growth of microplastics is a cause for concern. They have contaminated the oceans and soil, and even the air. These plastics are then found in animals, plants, and humans. Stefanie Linenberg, project leader at the European Investment Bank, launched the second version of the Clean Oceans Initiative in Nice, France as the U.N. Conference kicked off. She said that the amount could increase as more partners join. Ambroise Fyolle, vice president of the EIB, stated that the original initiative included French, Germans, Spanish and Italians lenders, as well as the European Bank for Reconstruction and Development. The pledged investment totaled 4 billion euros between 2018 and 2025. This was ahead of the year-end goal, he said. In the first phase, there were projects focusing on improving the treatment of wastewater in Sri Lanka, managing solid waste in Togo, and protecting Benin from flooding. The project will continue to focus on the upstream sources of garbage, such as helping to develop new packaging or ensuring that more waste is recycled. Lindenberg stated, "We understand that we have a role to play." "To reduce or at least keep in the system the amount of virgin polymer that is required." She said that the bank could lower the risks of developing new products, packaging, and technologies by, for instance, providing grants, cheaper funding or investing into third-party fund, The programme will also work with other development banks, especially those in Asia and Latin America. These are the two regions that produce most ocean waste. She said that the World Bank and Inter-American Development Bank are also in talks with the Asian Development Bank. The Asian Development Bank has already entered the second phase, and will be expected to provide local knowledge and contacts. You can find out more about the countries by clicking here. Will convene In August, they will try to reach an agreement to reduce plastic pollution after the December discussions in Busan, South Korea, failed to produce a result. ($1 = 0.8754 euro) (Editing done by Kirsten Doovan)
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White House aide: US seeks a 'handshake with China' on rare Earths
Kevin Hassett, White House economist, said that the three U.S. top trade negotiators want to shake hands with China during London talks in order to seal an agreement reached between Presidents Donald Trump & Xi Jinping on rare earths. Hassett, Director of the National Economic Council told CNBC that the purpose of today's meeting was to ensure that everyone is serious and to get a handshake. Hassett said, "I anticipate a brief meeting with a strong, big handshake." Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, along with U.S. trade representative Jamieson Greer, were scheduled to meet their Chinese counterparts on Monday in London to try to diffuse the ongoing trade dispute that has escalated in recent weeks. This includes export controls of goods vital to global supply chains. Hassett stated that the Chinese export controls for rare earths were a major sticking point. He said that because China controls the majority of rare earth and magnet supplies in the world, its restrictions to send them to the U.S. may disrupt production, especially for American automakers who rely on these materials. Hassett responded to the question about Chinese opposition to U.S. restrictions on semiconductor exports: "Our expectation, after the handshake and immediately after the handshaking, is that any export controls by the U.S. would be eased and the rare Earths released in large quantities, so we could then go back to the smaller issues." (Reporting and editing by Susan Heavey, Toby Chopra, and Doina Chopra).
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Saudi Arabia's GDP grew by 3.4% in the first quarter, exceeding flash estimates
Saudi Arabia's economy grew more than anticipated in the first quarter 2025, according government data estimates. Lower oil prices had a less significant impact on the economy than originally forecast. The Saudi General Authority for Statistics released a flash estimate of 2.7% in May. This was a significant improvement over the initial estimates. Monica Malik is the chief economist of Abu Dhabi Commercial Bank. She said that "the upward revision" was due to both a smaller contraction in the oil sector each year and a stronger growth in private sector. Initial estimates showed a contraction of 1.4%. The non-oil sector grew by 4.9%, compared with estimates made last month that indicated a 4.2% rise. Increased oil production in the Kingdom may have blunted the impact of lower oil price. Riyadh faces an increasing budget deficit. The International Monetary Fund says that Riyadh requires oil prices above $90 per barrel for its books to be balanced. Prices of $60 per barrel were the norm in recent weeks. Saudi Arabia, the largest oil exporter in the world, lowered the price of its July crude oil for Asian buyers beginning of June after the Organization of the Petroleum Exporting Countries (OPEC+) increased output for a forth month. OPEC+ has agreed to a further big increase in output of 411,000 bpd, after increasing output by the same amounts in May and June. Saudi Arabia has embarked on a costly transformation program called Vision 2030, which aims to wean its economy off of oil dependence. It has also been investing billions in massive new development projects. The Financial Times reported that in May, Saudi Finance Minister Mohammed Al-Jadaan stated the kingdom would take stock of its priorities as a result of a decline in oil revenues. Malik said that he expects to see a reduction in government spending, to reduce the growing fiscal deficit. This will also likely have an impact on the non-oil sector's growth. Daniel Richards is a senior economist with Emirates NBD. He said the bank still believes that spending levels will continue to be high. He wrote that there are still enough projects in progress to support growth at least through this year and the next. Saudi Arabia has committed to hosting a number of large international events. Each event will require significant expenditure on construction and development. The 2029 Asian Winter Games will feature artificial snow, a freshwater lake created by man, and the World Cup in 2034, where 11 new stadiums and some renovated ones will be constructed. Saudi Arabia's fiscal deficit in 2025 is expected to be around 101 billion Riyals ($27 billion). Pesha Magd is reporting; Toby Chopra is editing.
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Grossi: Iran's obtaining IAEA documentation is bad and shows poor co-operation.
Rafael Grossi, the chief of the U.N. Nuclear Watchdog agency, said that Iran's purchase of secret documents from the watchdog is a "bad" step and goes against the spirit that should exist between Tehran and the agency. In a confidential report sent to its member states by the International Atomic Energy Agency on May 31, it said that "conclusive proof" had been provided by Iran of Iran's active collection and analysis of Agency documents. The report stated that this "raises grave concerns regarding Iran's collaboration spirit" and could undermine IAEA work in Iran. But Tehran, in a recent statement to IAEA member states, said the accusations in the report were "slanderous", and that they had been made without "presenting any substantiated evidence or document". This week, the 35-nation Board of Governors of the IAEA will hold a quarterly meeting. The United States will propose to the board a resolution that declares Iran in violation of its obligations to non-proliferate due to other failures detailed in the report. Grossi said at a press briefing that "here, unfortunately, this is a situation that dates back a few year ago... We could tell with absolute clarity that documents belonging to the agency had been in the Iranian authorities' hands, which was bad." "We do not believe this action is compatible with the spirit and purpose of cooperation." Grossi responded: "No. We have received documents from our member states and we also have our own assessments of documents, equipment, etc. (Reporting and editing by William Maclean, Francois Murphy)
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Argentex, a UK-based company, rejects Lavide’s investment proposal
Argentex announced on Monday that it had rejected a proposal by Lavide Holding NV, based in the Netherlands, to acquire a 50% stake of the British currency risk management company for 2.5 million pounds (3.39 million dollars) and a possible provision of a credit line up to 15 million pounds. The British company refused the proposal because it did not cover the entire share capital or provide sufficient funding compared with an agreement made with IFX Payments. According to LSEG, Lavide has a current market capitalisation worth 3 million euros. Argentex experienced a near-total collapse of value after it halted trading in April. It was one of the earliest casualties in a prolonged bout of turmoil in global financial markets caused by trade tensions. By 1134 GMT, shares of the company had risen 22.4% to 3 pence. Argentex accepts a Takeover offer IFX Payments, a cross-border payment provider, valued the company at approximately 3 billion pounds in late April. It also provided it with a secure bridge funding of around 6.5 million pounds.
US climate change pullback threatens planned Debt-for-Nature deals
The debt agreements worth billions of dollars that were designed to protect ecosystems in Africa and Latin America could unravel or need to be reworked amid fears of the U.S. backing drying up under Donald Trump.
Debt-for nature swaps have become more popular in recent years. Deals involving the Galapagos Islands and coral reefs as well as the Amazon rainforest are among the most notable.
U.S. International Development Finance Corporation has played a major role in the swapping of debt, with nearly 90% of the $6 billion being covered by the DFC.
Sources with direct knowledge said that the DFC has about five swaps on the way. These are now being questioned by the CEO-in-waiting Ben Black, and the U.S. Government efficiency chief Elon Musk.
Source did not specify the amount of debt covered by swaps, but noted that the last DFC-backed transactions involved more than $1 billion per deal.
Requests for comments on the future involvement of the DFC in such deals were not responded to by the White House or the DFC spokespersons.
Unnamed DFC officials confirmed that they stepped down as co-chairs of the global task force established in 2023 for expanding the use of debt exchanges.
Scott Bessent, U.S. Treasury secretary, has also criticized multilateral lenders who are working on climate change issues. This comes amid a wider retreat by the U.S. that has seen them withdraw from Paris Agreement in order to reduce global warming.
Four sources who have worked directly on the projects say that Angola, Zambia and one Latin American nation are among those countries whose debt-for-nature swap plans may need to be reworked and even abandoned because of uncertainty surrounding DFC.
Vera Daves de Sousa, Angola's Finance Minister, said that her country has been in talks with the DFC regarding two possible swaps. Her country is among the most indebted countries in Africa, and its rivers are vital to the Okavango Basin, which supports endangered elephants and Lions.
One is a debt-for-nature deal, the other a broader 'debt-for-development' swap tied to education and young people.
De Sousa said recently that he felt "openness" from DFC, especially in relation to the debt-for development swap.
She added, "We respect their view." "For us, there's no difference. We have opportunities both on the development and nature sides."
Things have also changed in Zambia. Late last year, the country was considering a trade involving its large national parks, which are home to more than 40% of Africa's Elephants.
Situmbeko Musokotwane, the Finance Minister of South Africa, said that although the swap was not entirely shut down at the moment, the country did not intend to actively pursue it.
NEW REALITY
Smaller nations that are struggling with debt and climate change can generate money by exchanging expensive government bonds for less expensive ones.
According to the UK-based non-profit International Institute for Environment and Development, the 49 world's poorest countries most at risk of a debt crisis could exchange a quarter the $430 billion in debt they currently owe.
Sebastian Espinosa of White Advisory, managing director, has advised Barbados and Belize on swaps.
These could include credit guarantee from multilateral development bank, along with private sector insurers, and guarantors. The Bahamas pioneered this last year.
In the past, DFC support has been critical in scaling up deals. It offers up to $1 billion of political risk insurance. This protects the people who purchase the lower-cost bonds in the event that the governments fail to pay.
"Who will step up?" Eva Mayerhofer, at the European Investment Bank who backed a Barbados swap in 2023 said: "I don't know (to replace DFC)." "We won't have the ability to convert debts so regularly."
The Inter-American Development Bank (IADB), which has been involved in five out of nine of the debt-for-nature swaps over the past decade, often alongside the DFC, declined to comment on the impact of these swaps on its plans.
Stephen Liberatore of Nuveen, a leading investor in debt swaps, says that while it is possible to find substitutes for DFC, its knock-on effect has yet to be determined.
What is the cost of a private entity providing risk insurance compared to a public entity such as the DFC? Liberatore stated. "Does this change the amount saved?" The money is then used to conserve. "That is the ultimate question."
(source: Reuters)