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Indian dealers offer steeper discounts on ASIA GOLD as price rally dampens demand
The gold discounts in India reached their highest level in over a month this week, due to a rise in prices that were near record highs. Meanwhile, the rising rates in other major Asian cities also dampened demand. On Friday, domestic gold prices traded at around 98.300 rupees for 10 grams, having rebounded from a monthly low of 90.890 rupees and approaching the all-time record of 99.358 rupees. Indian dealers were forced to offer discounts due to the price spike Up to $56 per ounce less than official domestic prices. This includes a 6% duty on imports and a 3% tax on sales. Prices have increased, which has really affected demand. "Harshad Ajmera, wholesaler JJ Gold House of Kolkata, said that there were few buyers this week. The monsoon, which started earlier than usual in India this year, is usually a time when gold demand in India remains low. A Mumbai-based bullion seller with a private banking firm said that jewellers have stopped making purchases due to the lean season. They also don't wish to accumulate high-cost inventories. Dealers in China, the world's largest gold consumer, charged premiums between $10 and $14 per ounce above the global benchmark spot rate. Last week, gold bullion was traded at par or a $15 premium. Hugo Pascal is a precious metals dealer at InProved. He said that the increased gold price has negatively affected Chinese demand. In Hong Kong, gold In Singapore, the price was $0.30 to $1.30 higher. Gold traded at par prices with a premium of $2.50. We've also seen wholesalers selling due to high prices, said Brian Lan. In Japan, bullion Traded anywhere between a discount or premium of $0.5 over spot prices.
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The oil price is expected to rebound this week after US-China trade talks resume
Oil prices fell on Friday, but are on track to gain their first weekly increase in three weeks following the resumption of trade talks between U.S. president Donald Trump and Chinese President Xi Jinping. This has raised hopes for stronger growth and demand in two of the world's largest economies. Brent crude futures dropped 19 cents or 0.3% to $65.15 per barrel at 0441 GMT. U.S. West Texas Intermediate Crude lost 20 cents (0.3%), to $63.17 after having gained around 50 cents Thursday. Both benchmarks are on course to end the week higher, after two weeks of falling. Brent is up 2.1%, and WTI is up 4% this week. China's official Xinhua News Agency said that trade talks between Xi Trump were held at Washington's request. Trump said that the conversation had ended in a "very good conclusion" and added that the U.S. is "in very great shape with China, as well as the trade agreement." According to Melanie Joly, Canada has also been in trade discussions with the U.S. The Prime Minister Mark Carney is directly in contact with Trump. The oil market continues to be volatile with the news of tariff negotiations, and data that shows how the U.S. levies and trade uncertainty are affecting the global economy. Analysts at BMI (a Fitch affiliate) said that the possibility of increased US sanctions on Venezuela, which would limit crude exports, and an Israeli strike against Iranian infrastructure could add upside risks to prices. The price of oil will continue to fall in the next quarters due to both increased production by OPEC+ producers and non-OPEC producers. Saudi Arabia, the top exporter of crude oil to Asia, has cut its July crude price for Asia near the two-month low. This was a lower price drop than expected, after OPEC+ agreed in July to increase output by 411,000 barrels a day. The Kingdom had pushed for a larger output increase as part of a broader plan to regain market share and discipline the over-producers within OPEC+. This grouping includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia. (Reporting and editing by Sonali Freed and Jamie Freed; Sudarshan Varadhan)
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MORNING BID EUROPE-Trump-Musk feud shakes markets pre-payrolls
Stella Qiu gives us a look at what the future holds for European and global markets. The most expensive divorce ever could cost you a lot of money. The bromance-turned-to-brawl between U.S. President Donald Trump and billionaire Elon Musk sparked a 14% drop in Tesla shares overnight, wiping out $150 billion in market value. Trump has also threatened to cancel government contracts worth tens and tens billions of dollars with SpaceX. Investors haven't lost sight of the U.S. Payrolls Report that will be released later today. After a week of weak economic data, markets are wary of any negative surprises. After assessing the inflationary impact from Trump's tariffs, the Federal Reserve has been hesitant to cut rates. But the Trump-Musk spat was not without wider implications for markets. Bitcoin prices fell 4% over night as investors realised that Trump's support may not last forever. Asian technology shares fell in line with Wall Street, pushing most stock markets of the region into negative territory. Japan's Nikkei, however, was the exception. It rose 0.3%. In the morning of Friday, there were some signs that tempers might be cooling. Trump told Politico "it's fine" when asked about the split and Tesla stock prices stabilized in after-hours trade. Investors found little to celebrate in the meantime about the telephone call between Trump and Chinese president Xi Jinping on trade, which resulted in little more than a promise to continue to speak. Forecasts for May's U.S. payrolls predict a gain of 130,000 new jobs, while the unemployment rate remains at 4.2%. Fed funds futures indicate that there is little chance for a rate reduction until September. However, a cut at this time has been priced in about 90% with a second expected in December. Markets were subdued by fears of a negative surprise in payrolls. Wall Street futures are mostly flat, and European markets will open lower with EUROSTOXX futures down by 0.2%. On the currency market, the euro hit a six-week peak of $1.1495 over night after the European Central Bank reduced rates. However, it signaled that the policy easing cycle was coming to an end. Investors have given in to the idea of a July cut, but the final decision is expected in December. The following are key developments that may influence the markets on Friday. German Industrial Output and Trade Data for April Retail sales in the Eurozone for April Payrolls of non-farm workers in the U.S. for May
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Wall Street Journal, June 06
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Boston Consulting Group has fired two North American Partners involved in a joint Israeli-American effort for the distribution of humanitarian aid to Gaza. Senate Republicans in the United States are working on a proposal that would protect some NASA programs against large cuts proposed by White House. People familiar with the transaction have confirmed that Iran ordered thousands of tonnes of ballistic missile ingredients from China. The country is seeking to regain its military strength as it talks with the U.S. about the future of its nuke program. Humana, second-largest Medicare insurer, told congressional staffers it would support measures that would curb billing practices that result in billions of extra payments for the industry. Staffers and The Wall Street Journal viewed a document that was viewed by the staffers. U.S. president Donald Trump spoke with Chinese leader Xi Jinping on Thursday and suggested that after the call, one of the points leading to a break down in trade negotiations--the exportation of rare-earth mineral which is critical to the U.S. automotive industry--had already been addressed. Israel's military announced that it had targeted an underground drone facility located in southern Beirut, on Thursday. This was one of the largest strikes against Hezbollah assets in recent memory since a ceasefire agreement was reached in November.
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ASM Australia sees a surge in enquiries for rare earths amid supply shortage
Australian Strategic Materials reported on Friday that customers are increasingly interested in rare earth alloys and metals produced at its South Korean critical metals facility, as a result of China's restrictions on exports. The Korean Metals Plant of critical metals is one of only a few plants outside of China that can produce rare earth alloys and metals commercially. The shares of the company jumped up to 29.1%, to A$0.655. This was a new high for more than 3 weeks. However, they then pared some gains. The benchmark index for the broader market edged down by 0.1%. ASM said that it had received purchase orders for rare earth alloys from U.S. based Noveon Magnetics Inc. and Vacuumschmelze owned by the private equity firm ARA Partners. After providing USA Rare Earths with rare earth samples, the company has been in talks with other parties about future sales. It has also delivered 19 metric tons of rare earth metal to Magnequench - a division from Neo Performance Materials, located in Canada. In April, China, which produces 90% of the world's rare-earth minerals, implemented export restrictions on strategic minerals as a response to tariffs imposed by U.S. president Donald Trump. The company said that due to China's export bans, there are more disruptions in the supply of rare earths. It is therefore positioned to supply alternative supplies to the rest the world.
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GHD Tackles Offshore Wind Noise Impacts with New Modelling Kit
Engineering specialist GHD has unveiled a new subsea noise modelling program designed to mitigate the environmental impacts of offshore wind farms.GHD's solution, the RAT (R Acoustics Toolbox), has been developed to address challenges related to underwater noise by providing a bespoke, web-based interface that utilizes existing algorithms in a customizable manner.Developed using R programming language, the RAT is said to enhance efficiency and accuracy in underwater noise modelling. The program automates processes such as transect generation and data handling, which were previously done manually, and represents complex numerical data visually, making it easier to understand and analyses.The company is conducting impact assessments for Australia’s nascent offshore wind developments, with underwater noise becoming a crucial component of these studies.Underwater noise models are essential for predicting impacts on marine life, and the limited availability of commercial software solutions has historically inhibited the ability to conduct comprehensive assessments.The advanced underwater noise modelling program has already been successfully deployed on oil and gas projects in the Middle East, submarine cables, defense projects across Australia, and geophysical surveys in the U.K.Looking ahead, GHD plans to continue enhancing the RAT by adding features such as full movement models to simulate how species respond to noise over time"The algorithm spits out a huge amount of data - 10 kilometers long and 500 meters deep. We built a system to represent those numbers visually, making it easier to understand, even for experienced modelers,” said Marco Velasco, GHD's Senior Engineer in the Air & Noise Service Line."We will be using this program on upcoming wind farm projects in Australia. It will be a huge asset in terms of mitigating and managing noise impacts to marine fauna as a result of these offshore renewable projects,” added Pri Pandey, GHD Service Line Leader - Air & Noise.
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Iron ore gains for the week on China's resilient demand
The price of iron ore rose to a one-week-high on Friday, and was set for a weekly gain, thanks to progress in Sino-U.S. negotiations and the steady demand from China, its top consumer. However, seasonally low steel consumption limited gains. As of 0231 GMT the most traded September iron ore contract at China's Dalian Commodity Exchange was up 1.21% to 710 yuan (98.84 dollars) per metric ton. This is the highest price since May 29. This week, the contract has gained 0.9%. As of 0226 GMT on Friday, the benchmark July iron ore traded at the Singapore Exchange had risen 0.9% to $95.7 per ton. This is a 0.1% increase this week. The session began with the price at its highest level since May 29, $96.4. The market was optimistic after U.S. president Donald Trump and Chinese President Xi Jinping addressed weeks of brewing tensions over trade and a fight over vital minerals during a rare leader to leader call on Thursday. Analysts at Everbright Futures wrote in a report that the call between Sino-U.S. leader is a sign that trade tensions are easing between the two superpowers. This has sparked a risk-on mood. Analysts at Chaos Ternary Futures say that near-term ore consumption is expected to remain firm, as steelmakers will need to stockpile cargo in order to maintain production. Hot metal output has been relatively high, and the mills' inventory remains low. A survey by consultancy Mysteel revealed that the average daily hot metal production, which is a measure of iron ore consumption, was 2.42 million tonnes as of 5 June, up 2.6% compared to a year ago. Steel consumption has slowed down as the high temperatures of summer have hampered construction. Coking coal, coke, and other steelmaking ingredients were all up by 3.91% or 1.19% respectively. The majority of steel benchmarks at the Shanghai Futures Exchange rose. Rebar was 0.85% higher. Hot-rolled coils were up 0.81%. Wire rod was up 0.88%. Stainless steel was down 0.08%.
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The oil price is on track to make solid gains this week as China and the U.S. resume their trade talks
After the U.S. President Donald Trump resumed his trade talks with China's Xi Jinping, oil prices fell on Friday. However, they were still on track to gain their first weekly increase in three weeks. This was due to hopes of growth and higher demand in two of the world's largest economies. Brent crude futures dropped 12 cents or 0.2% to $65.22 per barrel at 0133 GMT. U.S. West Texas Intermediate Crude lost 15 cents (0.2%), to $63.22, following a gain of around 50 cents Thursday. Both benchmarks are on course to end the week higher, after two weeks of falling. Brent is up 2.1%, and WTI is 4% higher this week. Markets continued to move with the news of tariff negotiations, and data that showed how tariff impacts and trade war uncertainty are affecting global economies. China's official Xinhua News Agency said that trade talks between Xi Trump were held at Washington's request. Trump said that the conversation had ended in a "very good conclusion," and added that the U.S. is "in a very good position with China and the deal." According to Melanie Joly, the Minister of Industry, Canada, Mark Carney, was in direct contact with Donald Trump. Canada's ongoing wildfires have also contributed to the market. Saudi Arabia, the top exporter of crude oil to Asia, has cut its crude prices in July to levels that are near their two-month lows. This was a lower price drop than expected, after OPEC+ agreed in July to increase output by 411,000 barrels a day. The Kingdom had been pushing for a larger output increase, as part of a broader strategic plan to win back the market share and discipline the over-producers within OPEC+. This grouping includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia. Economic indicators show that the U.S. service sector contracted for the first time since nearly a full year in May, and the number of weekly claims for unemployment benefits rose, again pointing to the cooling of the labor market. Investors await Friday's nonfarm payrolls data in the United States for more information on Federal Reserve interest rate policy. (Reporting and editing by SonaliPaul; SudarshanVaradhan)
Sources: Italy refuses to tighten restrictions on Chinese shareholders when Pirelli calls for it
Sources said that the Italian government has refused to heed Marco Tronchetti Provera, Pirelli's vice-chairman and executive vice-chairman's request for tighter restrictions on Pirelli's Chinese investor.
Sinochem, a Chinese state-owned company, is Pirelli's biggest investor. Sinochem holds 37% of Pirelli while Tronchetti Provera owns 27.3% through its Camfin vehicle. Tronchetti-Provera, the company's CEO for over three decades, is Tronchetti-Provera.
Sinochem and Pirelli are at odds, with Camfin claiming that Sinochem's substantial holding is a threat to Pirelli’s ambitions of expanding its business in the United States.
Washington has cracked down on Chinese automotive technology by banning software and hardware that are controlled by Chinese companies from being used in U.S. roads.
Two sources with knowledge of the matter claim that Tronchetti Provera has lobbied the government to take additional action to limit Chinese influence at Pirelli by strengthening the restrictions Rome imposed in 2023 on Sinochem through the golden powers rules designed to protect strategic assets.
Sources, who asked not to be identified due to the sensitive nature of the issue, said that the administration of Prime Minister Giorgia Mello has, so far, rejected these calls.
Rome's cautious approach is partly due to concerns that it will rely too heavily on its golden power, according to one source. This comes at a time where Italy faces a dispute with UniCredit regarding the way the bank uses this tool when vetting financial deals.
All parties refused to comment.
Last November, the government launched an investigation into whether Sinochem executives' presence on the board of the tyremaker was in violation of these restrictions.
Second source: The government is currently conducting an investigation and will first check to see if there are any violations of the existing restrictions before taking a more aggressive stance against Sinochem.
FAR APART
Emanuele Orsini is the leader of Italian business lobby Confindustria, of which Pirelli has been a prominent member. He called on the Italian government to defend Pirelli's autonomy.
Orsini stated on Wednesday that "part of Pirelli's shares, which are now in the Chinese government's hands, do not approve the balance sheets, and therefore, Pirelli is jammed up."
Orsini said in a previous statement on Tuesday that Sinochem should reduce its stake in Formula One tire supplier Pirelli below 25%.
Camfin Sinochem have failed to reach an agreement on governance.
The Chinese company called a Pirelli proposal to solve problems "seriously unjust", while Camfin claimed that Sinochem’s approach might lead to the breaking of the shareholder agreement between the two biggest investors.
If the agreement is dropped, Sinochem, Camfin, and other shareholders will be able to present their own slates for Pirelli's annual general meeting (AGM), with one of these parties potentially taking control of Pirelli’s board.
Tronchetti Provera, according to two separate sources, was counting on additional government support via golden powers in case of a final confrontation with Sinochem during the AGM.
Pirelli continues to post good results, despite the ongoing challenges in the automotive industry. In the first quarter of this year, its net profit increased by 27% while revenues rose by 4%. Reporting by Giuseppe Fonte and Giulio Piccari, with additional reporting from Angelo Amante and Giselda Vasgnoni. Editing by Giselda Varnini and Keith Weir.
(source: Reuters)