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Bordeaux is threatened by wildfires as Spain fights off more fires
On Monday, firefighters battled wildfires that threatened the French city of Bordeaux and its wine region, while crews struggled to control forest fires in Spain, which have been raging for the past week. This is the result of an incredibly hot, dry summer in Western Europe. Authorities in France have evacuated 220,000 people including tourists and residents. In Spain, nearly 100,000 people have been asked to leave their homes. Authorities say that the French fires, which started last week near the Atlantic Coast, are only 15 kilometers (9.3 miles), from the entry points of the Bordeaux metropolitan area. Jerome Steffe said, "This is an unprecedented fire." Cestas is a suburb just outside of the Bordeaux city area. Authorities said that the spread of large fires in central Spain was slowed by more favorable weather conditions overnight. However, a separate fire in the eastern province of Castellon raged uncontrollably as the weather agency predicted another heatwave in this week. "What's happening is not a series of isolated incidents. The climate emergency is the most painful manifestation of this. "It makes heatwaves and sixth-generation fires more intense, our territory more vulnerable, and wildfires of a more destructive nature," said Prime Minister Pedro Sanchez on Monday. These so-called "sixth-generation" fires are the worst and most uncontrollable forest fires. They can generate their own weather and destroy thousands of hectares an hour. Scientists blame human-induced climate change for such fires and extreme heatwaves. Maria Angeles Serrano said she was worried about the destruction of nature: "Material damages is one thing but they can be repaired." The emotional pain is what really hurts." Economic Impact Being Feel Roland Lescure, the Finance Minister of France, said that wildfires in Bordeaux and other parts of southwest France had caused a major shock to regional economies. The region is a centre of French wine production, and also a major tourist destination. Lescure, a reporter at the time, said: "It is like thunder in a place that could have done without it." The government of President Emmanuel Macron was to meet on Monday and discuss the wildfire crisis. Three separate fire fronts remain active in central Spain's mountains, northwest of Madrid. The authorities estimate that 77,000 hectares has been burned in the three provinces of Madrid Toledo and Avila. Avila's fire has been deemed the largest wildfire in Spanish history. WINDOW -OF OPPORTUNITY Weather forecasts are less favorable for firefighting operations from Wednesday, but we still remain confident," said the Spanish Interior Minister Fernando Grande Marlaska. Forecasts by France's weather office indicate that France also faced similar conditions, with more favorable conditions on Monday, before temperatures rose again this week to 37 C (98.6 F), in the Bordeaux region. Steffe, the mayor of Cestas, said that it was a race against the clock to prevent a heatwave from returning. According to Climate Monitor, the average July high temperature in Bordeaux and Avila was 32 degrees Celsius, almost 6 degrees above the normal maximum between 1961 and 1990. RESPONSE TO SCRUTINY The size of the wildfires that raged in Europe this summer is putting pressure on firefighting equipment and raising questions as to how we should respond. Portugal and Greece have deployed over 100 personnel and military equipment as part of the European Union civil protection mechanism. Spain's interior ministry announced that two more planes would be arriving from Turkey. The Swiss government is helping France by sending its two Super Puma helicopters with their crews in response to a request made by Paris.
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China's net gold imports through Hong Kong in June were up on the year before, but down on May
Data?from Hong Kong’s Census and Statistics Department revealed?on a Monday that China’s net gold imports through Hong 'Kong had more than doubled in the past year, but dropped over 5% compared to last month. Data showed that the?world's largest gold consumer imported 50.679 tons of gold through Hong Kong via Hong Kong, compared to 53.674 tons from May and 19 366 tons by June 2025. Hong Kong data may not be a complete view of Chinese gold purchases because it is also imported via Shanghai and Beijing. China's total imports of gold via Hong Kong reached 78.147 tonnes in June, an increase of 19% over May's figure of 65.562 tons. In June, spot gold prices dropped by more than 11%. This is the fourth consecutive month that spot gold prices have declined. Official data revealed that China's central banks reported its largest monthly increase in gold reserve in over 2-1/2 years. The reserves reached 75.44 fine troy-ounces at the end of June compared to 74.96 a month before. Beijing and Hong Kong announced a series of measures earlier this month to boost gold trading in Hong Kong. Hong Kong has launched a central clearing system for gold, and re-established dollar gold futures trading. It is also looking to introduce yuan denominated gold futures in order to become a regional gold reserve hub. Ross Norman, an independent analyst, said that "gold flows through Hong Kong were likely inflated by the launch in recent months of new settlement and clearance?contracts. However, recent data suggests shipments are now normalising and moving a lot more directly into mainland China." "But, generally speaking, physical flow into China remains healthy." Reporting by Ashitha Shivprasad from Bengaluru, Editing by Alexandra Hudson & Louise Heavens
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Gold rises 1% amid US-Iran truce; oil prices are under pressure. All eyes on Fed meeting
Gold prices rose on Monday, as a pause between?strikes by U.S. forces and?Iranian forces brought crude oil prices down. This helped ease inflation fears and concerns about higher interest rates a week before Fed policymakers meet. Spot gold rose 1% by 1030 GMT to $4.093.34 an ounce, while U.S. Gold Futures for August Delivery climbed 0.6% to $4.095.60. "Precious Metals have begun the week in a positive way, thanks to a pause on Middle East hostilities. The dollar has also weakened, and the yields on U.S. Treasury bonds and oil have both slid," said Ross Norman, an independent analyst. The U.S. dollar index fell by 0.2% making greenback priced bullion more accessible to buyers abroad. Iran announced on Sunday that it would cease its own attacks if the United States did the same. A senior Iranian official confirmed this. Washington?paused their bombing campaign when President Donald Trump's advisors informed him that they were running low on targets and worried about depleting U.S. weapons. The oil prices fell more than 5% Monday, raising the hopes of a diplomatic resolution to the conflict around the Strait of Hormuz. Energy prices are rising, which increases inflation concerns and expectations for higher interest rates. Gold is often seen as a hedge to inflation but its non-yielding nature makes it less attractive in an environment of high interest rates. Investors are now looking forward to the Fed's rate decision meeting on Wednesday. About 34% of participants in the market expect a rate increase. "Gold is sending cautiously positive signals. One eye on Iran and the other on Fed. Norman?said that if Warsh pushes back against the roughly 2 hikes embedded in the curve now, it could be quite supportive of gold. According to CME FedWatch Tool, traders are pricing in a 79% chance that interest rates will be raised in September. (Reporting by Sukanya Mitra in Bengaluru; Editing by Ronojojo Mazumdar and Joe Bavier) (Reporting and editing by Ronojoy Mazumdar, Joe Bavier, and Sukanya Mtra in Bengaluru)
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Indonesia aims to solve the bottlenecks in mineral exports caused by rare-earth content
The Indonesian presidential staff office called for cooperation between government agencies, officials of law enforcement and industry in order to solve mineral shipment bottlenecks that are caused by a lack of clarity on the allowed 'rare earth content'. Indonesia is one of the world's largest exporters of minerals, but it produces rare earths only as a minor by-product. No rules have been established yet to govern the "proportion" of material that may be included in the shipment of other minerals. Officials stated on Monday that exporters faced shipment delays due to the lack of clear regulations in the matter. Dudung Abdurachman, the Presidential Chief of Staff, said on Monday that he had received reports about disruptions in mineral exports from "several" companies. He was speaking after he chaired a meeting between representatives of government agencies and law enforcement officials. Dudung stated that exports of rare earth elements in by-products were hindered due to a regulatory gap on the allowable content. He said that authorities, including military personnel, should not block exports because there are no rules for rare earth element products. Representatives from the key economic ministries were present, as well as the national research and development agency BRIN. Also in attendance were the?police and the Attorney General's Office. Indonesian law states that rare earth elements should be used for domestic purposes. President Prabowo Subianto set up an agency to monitor the development of this technology. (Reporting and editing by Jan Harvey; Additional reporting by Bernadette Christopher; Reporting by Dewi?Kurniawati)
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MORNING BID AMERICAS-China chip champ
What's important in the U.S. and Global Markets Today By Mike Dolan. Editor-at-Large for Finance and Markets The start of another volatile week for the markets is aided by a pause in the Iran conflict, and the significant decline in crude oil prices from the $100 mark. Calendar is packed with events, including the Federal Reserve meeting, a third?of?the 'S&P 500?reporting earnings - such as Apple, Microsoft, Meta, and Qualcomm?and second-quarter U.S. Gross Domestic Product estimates. Below, I'll go into more detail. Listen to the Morning Bid podcast to get a preview of the coming week and the oil market's latest decline. Subscribe to the Morning Bid daily podcast and hear our journalists break down the week ahead, including oil's latest retreat. CHINA CHIP KING Despite the recent drop in oil prices, there's still a 1 in 4 chance that the Fed will raise rates on Wednesday. This is priced into futures. Bank of England and Bank of Japan will also meet this week. The former is focusing on a recent yen decline, while the latter meets just before a new UK Prime Minister takes office. Oil prices were the first to set the tone this week. Brent crude started falling from triple-digit levels on Friday. The U.S. announced that it would pause its attacks on Iran following 13 days of continuous strikes. Iran said it would respond in kind and now we have to wait?to see if mediation resumes. Many in the market now assume that $100 oil will be a point of pressure - at the very least, in Washington. Brent dropped further on Monday morning to $89/bbl. Before the bell, shares in Asia rose and Wall Street futures jumped sharply. The hyperscalers' earnings will be examined forensically again, after Alphabet’s second-quarter burn caused its stock to fall last week, despite an impressive earnings beat. The Wall Street Journal reported, in other AI news, that Nvidia is in discussions to provide OpenAI with a $250 billion loan as part of its data center project. This is a reflection of the increasing cross-financing and OpenAI's own efforts to develop its infrastructure. The Chinese chipmaker CXMT saw its stock rise nearly 500% on its Shanghai debut in a massive IPO. Chart of the Day: New chip in the market? China's CXMT, which made its Shanghai debut on the market on Monday, soared nearly 500%. It is now China's most valuable stock, surpassing the Industrial and Commercial Bank of China. Asia's largest IPO raised $8.6 billion and has a value of over half a trillion dollar. CXMT’s?enlarged capital share was only 6.73% freely tradeable when it listed, since most shares were locked up. The initial small float magnified the price swings, and led to a high level of turnover. CXMT, a Chinese chip manufacturer, is expected to play a key role in China's own AI and tech ecosystem. This makes it a global strategic firm. Watch today's events * U.S. June ?durable goods (8:30 a.m. EDT) Auctions of U.S. 2-year, 5-year and 10-year notes Want to receive the Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent the views of News. News is committed to the Trust Principles and upholds integrity, independence, as well as freedom from bias.
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Copper prices increase as US-Iran lull calms fears of oil and economic growth
Prices of copper rose on Monday as oil prices dropped after the U.S. & Iran suspended their 'hostilities', alleviating concerns over price pressures and global growth. Benchmark 'copper' on the London Metal Exchange rose 0.32% to $13,688.5 per metric ton by 0700 GMT. The Pentagon suspended its campaign against Iran on Friday after 13 nights of increasing airstrikes by the United States. Iran has been holding a 'fire' for two days after it had responded to each night’s U.S. airstrikes with its own attacks on countries in the region that house U.S. bases. The oil prices fell as the ceasefire in fighting raised the hopes of a diplomatic solution allowing shipping in the Strait of Hormuz to resume. Tom Price, Panmure Liberum analyst, said that the market was waiting for a resolution. It is pricing peace instead of a war. "Chile was hit by unusually severe storms that put pressure on the electricity distribution grid, and raised questions about the copper production guidelines across the industry," said Panmure Liberum analyst Tom Price. The market is also focusing on the copper stocks stored in LME approved warehouses. With 272,975 tonnes Stocks are down 30% since May's end. Since February of last year, producers and traders have been importing copper into the United States. This is because President Donald Trump had threatened to impose import tariffs. The result was a premium in U.S. Copper over LME Prices. The U.S. Commerce Department was supposed to finish a review on the copper market before June 30, but Trump has yet to announce a decision regarding tariffs. Other metals saw a 0.6% increase in aluminum to $17.385, a 0.8% rise in zinc to $3.621, a 0.3% rise in lead to $1.839, and a 1.3% jump for tin to $54,500. Nickel was unchanged at $17.385.
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Gold rises by 1% amid U.S. Iran truce; attention on Fed meeting
Gold prices rose on Monday as a pause between strikes?between U.S. forces and Iranian forces?helped?crude oil?price?fall. This helped ease inflation fears and concerns about the possibility of higher interest rates during a week when policymakers from the Fed will be meeting. Spot gold rose by 0.9% to $4.089.03 an ounce at 0805 GMT. U.S. gold futures for delivery in August also increased by 0.5%, to $4.090.80. "Precious Metals started the week in a positive way, thanks to a pause of hostilities in the Middle East. "Oil has fallen and both the dollar yields and U.S. Treasury yields are down," said Ross Norman, an independent analyst. The U.S. dollar index fell by 0.2% making greenback bullion prices more affordable to buyers abroad. A senior Iranian official said that Iran?will stop its attacks if the United States does?the same?. Washington has halted its bombing campaigns after Donald Trump's advisors informed him that they had run out of targets. They also expressed concern about the depletion of U.S. arsenal. The oil prices fell more than 6% Monday, increasing hopes for a diplomatic solution that would de-escalate conflict in the Strait of Hormuz. Energy prices are rising, which increases inflation fears and expectations for higher interest rates. Gold is often seen as a hedge to inflation. However, its non-yielding nature makes it less attractive in an environment of high interest rates. Investors are now focusing on the Fed's rate decision meeting scheduled for Wednesday. About 66% of participants in the market expect that rates will remain unchanged. "Gold is flashing cautiously positive signs: one eye on Iran and the other on the Fed. Norman said that if Warsh resisted the roughly two hikes embedded in the curve now, it could be quite supportive for the gold. According to the CME FedWatch Tool, traders?price in a?77% probability of a rate hike in September. Spot silver increased by 1.7%, to $59.15 an ounce. Platinum rose 2.7%, to $1.631.20. Palladium rose 3.3%, to $1.284.00. (Reporting by Sukanya Mitra in Bengaluru; Editing by Ronojoy Mazumdar)
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Oil prices fall after Middle East conflict pause, global stocks rise
As tensions in the Middle East eased, oil prices fell sharply and inflation fears were reduced. This was ahead of a busy week of central bank meetings and earnings reports. Iran announced on Sunday that it would cease?its? own attacks if the United States also did so. The U.S. Military was reportedly worried about the dwindling supply of ammunition. Brent crude fell 6.3% to $90.70 a barrel during the lull of fighting in the Strait of Hormuz, while U.S. Crude dropped 5.7% to $74.12. On Monday, stock markets around the world staged a relief rally after fighting in the Middle East pushed oil to over $100 per barrel during the last week. At one point, the STOXX 600 index in Europe climbed by nearly 0.5% and reached its highest level since July 7. Retail and travel stocks, which are sensitive to the economy, rallied by more than 2%. However, a decline in oil stocks hurt the market as a whole. S&P futures increased by 0.9% while Nasdaq Futures rose 1.5%. The MSCI broadest Asia-Pacific share index outside Japan increased by 0.3%. The euro rose 0.23% to $1.1395. The dollar also gained against most major currencies as traders reduced the likelihood of rate hikes by the Federal Reserve in the coming week. Markets indicate that the U.S. Central Bank's decision will be made on Wednesday. The markets suggest a 1 in 3 chance of an increase, but most analysts do not believe Chair Kevin Warsh is likely to support such a move. "A rate increase this week would send a powerful message at the beginning of his term, that he's serious about improving the Fed’s credibility in fighting inflation. We are not convinced that he will back up his tough words on inflation this week with policy actions," Lee Hardman said, a senior forex analyst at MUFG. If inflation risks don't ease over the summer months, it is more likely that a rate hike in September will be necessary. Both the Bank of England and Bank of Japan are expected to remain cautious in their approach, while maintaining their current policy. The dollar dropped 0.2% versus the yen, to 163.53. Earnings from TECH BULLS Chinese blue-chip stocks gained?1.2% after chipmaker CXMT Corp surged almost 500% in Shanghai's trading debut, following its raising of $8.6 billion through Asia's largest initial public offering. According to LSEG data, about a third of S&P500 companies will report earnings this week. Earnings are expected to increase by 26.5% over last year. Even 'blockbuster' results may not satisfy investors, given the high expectations and growing unease about the cost of AI capex. A Wall Street Journal article reported that Nvidia had been in discussions to provide an estimated $250 billion backstop for OpenAI, as part of a project involving data centers. This week, companies reporting include tech darlings Microsoft and Meta Platforms as well as Amazon, Apple, Qualcomm and a number of industrial, healthcare and defence stocks. Highlights of the data include:?U.S. The second quarter GDP is expected to grow at an annualised rate of 1.5%, after a sluggish start to the year. The week's calendar includes the PCE price index for June, personal income, consumption, weekly claims of unemployment, the second quarter employment cost index, and consumer sentiment in July. The Euro Zone's schedule includes the flash Q2 GDP (Gross Domestic Product), July economic sentiment, consumer confidence and flash inflation. According to the Ifo Institute survey conducted on Monday, German business morale increased more than expected in August due to significantly better expectations. The 10-year Treasury yields fell 3.8 basis points, to 4.64%. The drop in yields has helped gold prices to rise by 0.92%, or $4,090.45 per ounce, on commodity markets. (Reporting and editing by Stephen Coates and Sam Holmes; Mrigank Dhaniwala and Wayne Cole)
US, Canadian business kick off 2024 with layoffs
Business in the United States and Canada have kicked off 2024 with thousands of job cuts across sectors, indicating that the wave of layoffs seen in 2023 could persist as they rush to rein in expenses.
While hopes of a soft landing have actually grown in recent months, business continue to beware as the outlook on rate cuts by the Federal Reserve stays unpredictable.
Here is a snapshot of job cuts announced so far in 2024:
TECHNOLOGY
* Amazon's task cuts consist of less than 5% of employees at Buy with Prime unit, 5% at audiobook and podcast department Audible, numerous hundred in streaming and studio operations, 35% at streaming system Twitch, a few hundred at healthcare systems One Medical and Amazon Pharmacy. It likewise revealed layoffs at Amazon Web Services( AWS) impacting several hundred roles in sales, marketing, and worldwide services and a few hundred roles in the physical stores innovation group.
* Layoffs at Alphabet include lots at the division for establishing new technology X Laboratory, hundreds in the advertising sales team, hundreds across groups, consisting of the hardware team accountable for Pixel, Nest and Fitbit, and a. bulk in the augmented reality team.
* Microsoft is cutting around 1,900 tasks at video gaming. departments Activision Blizzard and Xbox.
* IBM plans to lay off some employees in 2024 but. will work with more for AI-centered roles.
* E-commerce firm eBay prepares to cut about 1,000. roles or around 9% of its labor force.
* Videogame software supplier Unity Software to cut. about 25% of labor force, or 1,800 jobs.
* DocuSign strategies to lower its labor force by about. 6%, or 400 employees, with a majority in its sales and marketing. organizations.
* Snap plans to cut around 528 jobs or 10% of its. global labor force.
* Salesforce is laying off about 700 employees, or. approximately 1% of its global labor force.
* Network huge Cisco is planning to restructure. its company which will consist of laying off thousands of. staff members.
* Self-governing automobile innovation company Aurora Innovation. lays off 3% of labor force.
* Canada's BlackBerry plans more layoffs, in. addition to about 200 task cuts in the prior quarter.
* Satellite radio business SiriusXM plans to minimize. labor force by about 3%, or about 160 functions.
* Bumble is set to get rid of 350 tasks or about 30%. of its workforce.
MEDIA
* Walt Disney's Pixar Animation Studios is set to. cut jobs as the studio has actually finished production on some shows.
* Comcast-owned British media group Sky plans to. cut about 1,000 jobs throughout its services this year.
* The Los Angeles Times prepares to lay off 94 reporters.
* Paramount Global is preparing to conduct an. unspecified variety of layoffs.
* Business Insider plans to lay off around 8% of its staff.
* Bell Canada plans to slash 4,800 tasks.
FINANCIAL SERVICES
* PayPal Holdings is preparing to cut about 2,500. tasks, or 9% of its international workforce this year.
* Payments firm Block Inc has started to cut. unspecified jobs.
* Citigroup is planning to reduce its headcount by. 20,000 people over the next two years. It has revealed strategies to. slash 716 functions in New York towards that target.
* Financial investment banking giant Morgan Stanley is planning. to cut hundreds of tasks in its wealth management system, a person. familiar with the matter told , including that the cuts will. effect less than 1% of the division's employees.
* Exchange operator Nasdaq prepares to slash hundreds. of tasks as it incorporates fintech company Adenza into its service.
* Possession manager BlackRock is set to cut about 3% of. its workforce but expects a larger headcount by the end of 2024.
CONSUMER AND RETAIL
* Cosmetics huge Estee Lauder plans to cut 3% to 5%. of its worldwide labor force.
* Wayfair prepares to lay off 1,650 workers, or about. 13% of its labor force.
* U.S. department store chain Macy's is cutting 2,350. tasks, closing five shops.
* Levi Strauss & & Co is planning to slash 10% -15% of. international business jobs.
* Hershey's restructuring strategy will impact less than. 5% of its workforce.
* Nike will cut about 2% of its overall workforce, or. more than 1,600 jobs, as the sportswear giant wants to cut costs. after flagging weaker profits this year.
HEALTH
* Novavax is cutting about 12% of labor force.
MANUFACTURING
* Defense contractor Lockheed Martin is preparing to. cut 1% of its tasks.
* United Parcel Service prepares to cut 12,000 tasks to. cut costs.
NATURAL RESOURCES
* U.S. miner Piedmont Lithium cuts 27% of labor force. in the cost-cutting strategy.
* Canadian oil and gas pipeline firm TC Energy has. laid off some of its workers as part of a formerly announced. strategy to incorporate its natural gas pipeline systems.
* Canada-based crude pipeline operator Enbridge. stated it would minimize its workforce by 650 tasks, or 5%, in a quote. to cut expenses.
CAR MANUFACTURERS
Electric automaker Tesla will
lay off
more than 10% of its international labor force, an internal memo. seen on Monday reveals, as it faces falling. sales amid a magnifying cost war for electric automobiles.
(source: Reuters)