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US Treasury continues to review its sanctions list and removes 84 individuals and firms
The U.S. Treasury has purged 84 more companies and individuals from its list of 17,000+ sanctions as part a larger?effort to streamline sanctions programs, and to make it easier for banks to pursue?the most serious terrorist financing schemes. In May, U.S. Treasury secretary Scott Bessent launched a major revision of its sanction programs and lists in order to remove outdated entries. This would ease compliance burdens for financial institutions. Later, he announced the removal of outdated targets. A Treasury official stated that the goal was "to ensure Treasury sanction remain sharp and focused and to remove any bloat from previous administrations," noting that over 3,000 names had been designated in 2024 compared with just 880 in 2017. Sanctions aren't meant to be used forever. Bessent also highlighted that the Trump administration was willing to impose sanctions against Russia's biggest oil companies, Rosneft & Lukoil. This is a move the Biden administration avoided out of fear of an increase in oil prices after Russia's full scale invasion of Ukraine 2022. The second batch of removals on Monday from Treasury's Specially Designated Nationals and Blocked Persons List includes 36 people that have died and their?associated listings, 33 Iraqi-related entities designated first in 1991 or 1992, seven outdated or defunct narcotics lists related to Colombia and eight disrupted drug kingpins. Treasury's Office for Foreign Assets Control (OFAC), updated the listings of 22 individuals and companies to include or clarify key identifiers that were missing. Treasury noted that each removal was done after a thorough review by other agencies, to make sure that the names removed would not be detrimental to U.S. national security or foreign policy interests. Brett Erickson is the managing principal of Obsidian Risk Advisors and he said that the Trump administration's efforts to streamline the list of sanctions makes sense. It will allow banks to concentrate on the most legitimate threats. He said that "at a time when so many things are happening on the front of sanctions, it is important to be as effective as possible or risk failure." The review so far has been focused on older sanctions, where there are often missing identifying information, such as place and date birth, unique identification numbers, nationality or gender. Treasury stated that adding more robust data would make compliance screening easier for financial institutions. Treasury noted that OFAC also found a few duplicate entries in its sanction lists. The?same property or person was included under different list entries more than once, Treasury stated. Treasury said in an internal document that it is reviewing targets that are outdated or difficult to screen in order to reduce the compliance burden for financial institutions, as well as improve national security outcomes. It added that the impact of sanctions should not be measured by the number of names on a list, but rather the effect, the impact, and the national security benefit. Treasury launched on June 29, a new portal online that allows sanctioned persons or firms to request to be removed from the list. This is part of an effort to streamline the process. Reporting by Andrea Shalal, Editing by Andrea Ricci
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Gold increases as oil declines due to a pause in US/Iran strikes. Fed rate decision is in focus
Gold prices rose Monday, as the pause in hostilities involving?the United States?and?Iran?sent?crude oil to a week-low. This eased inflation fears ahead of this week's U.S. rate decision. Spot gold rose 0.9% to $4,090.79 an ounce at 12:35 pm EDT (1635 GMT), and U.S. Gold Futures for August Delivery rose 0.5%, reaching $4,093.00. The U.S. Dollar Index has weakened by?0.1% making greenback bullion prices more affordable to buyers abroad. Bart 'Melek is global head of commodity strategies at TD Securities. He said that the main reason for the lower interest rates is because the oil'market has fallen from $100 to $90 in the last week. Brent futures dropped 8%, to a new one-week low after U.S. president Donald?Trump said that "good talks" are taking place with Iran "right now". After two weeks of strikes, the U.S. paused its attacks over the weekend. This raised hopes for a diplomatic solution to deescalate this conflict and restore shipping in the Strait of Hormuz. Lower energy prices reduce inflation fears and lower bets on higher interest rates for longer. Gold is often seen as a hedge to inflation, but higher interest rates can be detrimental to the metal. CME FedWatch data shows that 66% of traders expect policymakers to keep interest rates the same. They are pricing in an 80% probability of a rate increase in the U.S. in September. Investors are also awaiting the U.S. The Fed's preferred measure of inflation, Personal Consumption Spending data for June, is due Thursday. This will provide further clues about monetary policy. Data from Hong Kong’s?Census and Statistics Department revealed on Monday that China's net imports of gold via Hong Kong had more than doubled from the previous year in June. However, they had?fallen more than 5% compared to?the preceding month. Silver spot rose by 1.3%, to $58.94 an ounce. Platinum gained 2.7%, to $1.631.42, while palladium rose 4.1%, to $1.294.75. (Reporting from Noel John, Bengaluru. Editing by Tasim Zaid and Jan Harvey.
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Former FDA chief: Central Mexico could have widespread cyclosporiasis infection
Scott Gottlieb, former U.S. Food and Drug Administration commissioner, said on Monday that'some large growers and retail outlets have stopped sourcing their produce from a region in Central?Mexico linked to a cyclosporiasis epidemic because they are concerned about widespread contamination. A?FDA investigation linked the outbreak to Taylor Farms iceberg lettuce, served at?Taco Bell owned by Yum Brands, in nine states. Health regulators are investigating other products. According to the U.S. Centers for Disease Control and Prevention, there are 4,173 confirmed cases in laboratories, and more than 7,400 suspected cases. Michigan, where more than 9,000 cases have been recorded, said that it was still searching for the cause of any ongoing cases. Gottlieb, speaking on CNBC, said that multiple outbreak clusters in the Great Lakes Region, New York, and North Carolina appeared to be related to parsley?and cilantro?from Central Mexico. However, investigators haven't determined the exact source. A parasite of microscopic size, Cyclospora can cause gastrointestinal problems that last for a long time. Gottlieb stated that there may have been contamination in multiple fields of the area. He said that raw sewage may have reached the growing areas via irrigation, flooding, portable toilets overflowing by farm workers, or a sewage channel breach. "It seems that something happened in the central part of Mexico. He said, "We don't yet know what." The U.S. Department of Health and Human Services has not responded to the request. Requests for comments were not answered by U.S. grocery stores such as Walmart, Target, Costco, and Amazon Fresh. Restaurant operators like Taco Bell, Chipotle, Wendy's, and Taylor Farms also did not reply. Multiple Cluster Gottlieb stated that some of the 'larger growers' and retailers no longer source produce from the area because they 'are viewed as possibly?linked to outbreak. He said that a lot of this product was being removed from supply chains. This should help to mitigate the risk. He did not name the companies. Taylor Farms has said that it is no longer sourcing its products from the region, and closed down its production facilities there. Gottlieb stated that weather conditions have increased the?risks of contamination. This has led officials to expect a?worse-than-usual season for cyclospora. Gottlieb said that the real number of cases may be 10 to 20 times higher than what is reported. This is the biggest outbreak of cyclospora we've seen in history. (Reporting from Siddhi Mahtole in Bengaluru; Additional Reporting by Anuja Mistry, Editing by Caroline Humer and Tasim Zaid)
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Copper prices increase as US-Iran lull calms concerns over oil and economic growth
Prices of copper rose Monday, as oil prices fell after the U.S. & Iran ended hostilities. This eased?concerns over price pressures and economic growth. Benchmark copper prices on the London Metal Exchange were up 0.6% at $13,733 per metric ton, 1606 GMT. The Pentagon has suspended its campaign against Iran after 13 nights of increasing airstrikes by the United States. Iran has been holding fire for the past two days after it had responded to each night's U.S. airstrikes with its own attacks on countries in close proximity that house U.S. military bases. As the fighting paused, oil prices fell as hopes grew of a diplomatic resolution that would allow shipping to resume in the Strait of Hormuz. Tom Price, Panmure Liberum's analyst, said that the market was waiting for a resolution. "Rather than a war in progress, it is trying to price peace," he added. "Chile was?hit with unusual storms that put pressure on the grid of the country's power supply and raised questions about the copper production guidelines?across industry." According to the U.S. Geological Survey, Chile accounted 23% or 5.3 millions tons of global mined copper production last year. The market is also focusing on the copper stocks stored in warehouses approved by LME, according to traders. Stocks have fallen 30% to 272,975 tonnes since May's end. Since February of last year, producers and traders have been shipping copper to the United States, after President Donald Trump threatened to impose import tariffs. This has created a premium on U.S. Copper?over LME Prices. The U.S. Commerce Department had to finish a review of the copper market by June 30. However, Trump has yet to announce a tariff decision. Price of Panmure Liberum said that the movement of copper to the United States would tighten short-term supplies elsewhere, because inventories are just that: "short-term supplies". The market also watched as aluminium inventories fell to their lowest levels?this century due to supply constraints in the war-torn Middle East, which forces consumers to reduce stockpiles. Lead was up 0.5%, and aluminium gained 0.2%. Zinc rose 0.5%, to $3.615, while tin rose 1.1%, to $54,380, and nickel fell 0.8%, to $17.240.
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Oil and Treasury yields fall on Iran-US truce, causing stocks to be mixed
Oil prices fell and Treasury yields declined on Monday after U.S.?and Iran stopped their strikes at the weekend. This halted?two weeks worth of attacks. News of the pause in strikes by the U.S. and Iran over the weekend raised hopes of a diplomatic solution that would de-escalate conflict and allow shipping through the Strait of Hormuz to resume. Investors, however, remained cautious as tensions remain high. Saudi Arabia, Jordan, and Iraq all reported drone strikes on Monday as Tehran seemed to be testing President Donald Trump's new strategic U-turn. Jay Hatfield is the chief executive officer and chief investment office at Infrastructure Capital Advisors, a New York-based firm. "We were of the opinion that Iran would not come to a lasting agreement but we thought they'd?kick the can down to the next day." We might see some more can-kicking. Investors are also avoiding the central bank's interest rate announcements and important tech company earnings that are due this week. U.S. crude dropped 6.35%, to $83.66 per barrel. Brent was down to $90.18 a barrel on the same day. The yield on the benchmark U.S. 10 year notes dropped?2.42 points, to 4.655% from 4.679% at late Friday. The Dow Jones Industrial Average, the largest U.S. stock market index, had the best performance, rising by 346.81 or 0.67% to 52,294.06. The S&P500 rose 1.90 points or 0.03% to 7,414.01 while the Nasdaq Composite dropped 50.57 points or 0.20% to 24,925.25. The pan-European STOXX 600 Index rose 0.35% while Europe's FTSEurofirst 300 index rose 8.08 or 0.31%. CENTRAL BRANDS? IN FOCUS It is expected that the U.S. Federal Reserve will hold rates at their current level when its two-day conference concludes on Wednesday. However, traders are concerned about a possible rate hike. The Fed's expectations have been thrown into turmoil after recent increases in oil prices rekindled inflation fears. Fed Chairman Kevin Warsh’s preference for less guidance adds to the uncertainty about whether the central banks will raise rates. Fed funds futures traders currently price in 38% odds that a hike will occur on Wednesday, and 81% of a rise by September. Bank of England's policy announcement will be made on Thursday. The Bank of Japan will follow on Friday. Both are expected keep rates unchanged while highlighting the need to remain cautious about future inflation risks. The dollar fell 0.7% to 163.73. Gold prices rose 0.42% on commodity markets to $4,069.42 per ounce. A WAVE of COMPANIES? REPORT EARNINGS Investors will also be watching the earnings of S&P 500 companies, as approximately one-third are due to report their results this week. The results of "Magnificent Seven" members Microsoft.com, Amazon.com Meta, and Apple will be viewed as a test for the AI industry. The negative cash-flow reports of Alphabet and Tesla from last week added concerns about debt-fueled spending by corporations, while the strong stock market debut of Chinese chipmaker CXMT signaled a?intensifying competitiveness for the U.S. Semiconductor Industry. This is a big week. This week could determine if hyperscalers, semiconductors and memory stocks outperform the rest of the year," Thomas Hayes said. The week's data highlights include the U.S. second-quarter advance GDP reading. Calendar highlights include the June PCE Price Index, personal income and consumption data (weekly jobless claims), the second-quarter employment cost index and the July Michigan Consumer Sentiment Survey. The Eurozone data schedule includes the flash second-quarter GDP and July consumer confidence figures, as well as the flash inflation and June unemployment numbers. Ifo Institute survey released on Monday revealed that German business morale increased more than expected in the month of July. This was due to significantly higher expectations. (Reporting and editing by Joe Bavier; Additional reporting by Sruthi Shakar, Chuck Mikolajczak Johann M Cherian Ragini Mathur Florence Tan Trixie Yap, Ragini Mathematics, Johann M Cherian)
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Copper prices increase as US-Iran lull calms concerns over oil and economic growth
Prices of copper rose on Monday as oil prices dropped after the U.S. &?Iran ended hostilities. This eased concerns over price pressures and economic growth. Benchmark 'copper' on the London Metal Exchange rose 0.6% to $13,729 per metric ton as of 1427 GMT. The Pentagon suspended its campaign against Iran on Friday after 13 nights of increasing U.S. airstrikes. Iran has been holding fire for the past two days after it had responded to each night's U.S. airstrikes with its own attacks on countries in close proximity that house U.S. military bases. The oil prices fell as a result of the ceasefire in fighting, which raised the hopes of a diplomatic resolution that would allow shipping in the Strait of Hormuz to resume. Tom Price, Panmure Liberum's analyst, said that the market was waiting for a resolution. It is pricing in peace instead of an ongoing conflict. "Chile has been hit by unusually severe storms that have put pressure on the power grid and raised questions about the copper production guidelines across the industry." According to the U.S. Geological Survey, Chile accounted 23% or 5.3 millions tons of global mined copper production last year. The market is also focusing on the copper stocks stored in warehouses approved by LME, according to traders. Stocks have fallen 30% to 272,975 tonnes since May's end. Since February of last year, producers and traders have been shipping copper from the United States to the United States. This is because President Donald Trump has threatened import tariffs. The result was a premium on U.S. Copper compared to LME prices. The U.S. Commerce Department had to finish a review of the copper market by June 30. However, Trump has yet to announce a tariff decision. Price from Panmure Liberum said that the movement of copper to the United States would tighten short-term supplies elsewhere, because inventories are just that: "short-term supplies." Aluminium stocks have dropped to their lowest levels in the past century due to supply constraints in the war-torn Middle East. Lead was up by 0.5% and aluminium gained 0.5%. Tin rose 0.5%, while nickel fell 1.1%.
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Gold increases as oil declines due to a pause in US/Iran strikes. Fed rate decision is in focus
Gold prices rose on Monday as the United States and Iran agreed to cease hostilities, sending crude oil prices down to their lowest level in a week, which eased inflation fears ahead of this week's U.S. rate decision. Spot gold rose by 0.9%, to $4.087.59 an ounce, at 09:43 am EDT (1343 GMT), whereas U.S. Gold Futures for August Delivery rose by 0.5%, to $4.090. The dollar index weakened by 0.1%, making greenback-priced bullion more affordable for buyers overseas. The dollar index weakened by 0.1%, making greenback priced bullion more accessible to buyers abroad. Bart Melek is global head of commodity strategies at TD Securities. He said that the oil price has dropped from $100 to $90 in just one week, which is driving down interest rates. After two weeks of strikes, the U.S. paused their?strikes at the weekend. This raised hopes of a diplomatic resolution that would deescalate this conflict and allow shipping in the Strait of Hormuz to resume. Lower energy prices reduce inflation fears and lower bets on higher interest rates for longer. Gold is often seen as a hedge to inflation but higher interest rates tend to weigh on the metal. CME FedWatch data shows that 66% of traders expect the Federal Reserve to keep interest rates at their current level. They are still pricing in a rate increase of about?79% for September. Investors are also awaiting the U.S. The Personal Consumption Spending data for June is due Thursday. This will provide further clues about monetary policy. Data from Hong Kong’s?Census and Statistics Department revealed on Monday that China's net imports of gold via Hong Kong had more than doubled in the past year, but dropped over 5% compared to?the prior month. Silver spot rose by 1.3%, to $58.92 an ounce. Platinum gained 2.3%, to $1625.31, while palladium increased 3.4%, to $1285.79. (Reporting from Noel John, Bengaluru. Editing by Tasim Zaid)
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The Russian oil tax falls short of the budget target in July
Calculations showed that the rouble-denominated oil price in Russia used to calculate taxes was averaging 19% lower than the budgeted level for the federal government this month. This added pressure to the public finances, which were already strained due heavy military expenditures. The government's Budget Portal shows that federal spending and budget deficits could be higher than official projections for 2026 by over?1 trillion (US$12.85 billion). Russia has increased its military spending dramatically to fund the war in Ukraine. Calculations showed that the tax rate on?Russian crude oil? averaged 4,406 Russian roubles per barrel between July 1 and 24, which is 1,034 roubles below the 5,440 roubles level used in 2026's budget. For the?budget revenues calculations?, the government assumed that Russian oil would cost $59 per barrel, and an exchange rate between 92.2 roubles and dollars, which is equivalent to 5,440 Roubles per barrel. The Middle East conflict has caused oil prices to fluctuate in recent weeks. Oil prices dropped 7% to a new low on Monday, after the U.S. and Iran suspended their strikes for the weekend following two weeks of attacks. This raised hopes of a diplomatic resolution that would ease tensions and allow shipping through the Strait of Hormuz to normalise. Last week, Brent crude was at $100 per barrel as the conflict disrupted oil shipments through the Strait of Hormuz. Oil spilled out into the Red Sea and hampered shipments to Asia from Saudi Arabia.
United States, Canadian business begin 2024 with layoffs
Companies in the United States and Canada have started 2024 with countless task cuts throughout sectors, indicating that the spate of layoffs seen in 2023 might continue as they scramble to check costs.
While hopes of a soft landing have grown in recent months, companies continue to be cautious as the outlook on rate cuts by the Federal Reserve remains uncertain.
Here is a photo of task cuts announced up until now in 2024:
INNOVATION
* Amazon's job cuts consist of less than 5% of employees at Buy with Prime unit, 5% at audiobook and podcast division Audible, a number of hundred in streaming and studio operations, 35% at streaming system Twitch, a few hundred at health care units One Medical and Amazon Pharmacy. It also revealed layoffs at Amazon Web Solutions (AWS) affecting several hundred functions in sales, marketing, and international services and a few hundred roles in the physical shops innovation group.
* Layoffs at Alphabet include lots at the department for developing brand-new technology X Lab, hundreds in the advertising sales team, hundreds throughout teams, including the hardware group responsible for Pixel, Nest and Fitbit, and a. majority in the enhanced reality group.
* Microsoft is cutting around 1,900 tasks at gaming. divisions Activision Blizzard and Xbox.
* IBM prepares to lay off some employees in 2024 but. will work with more for AI-centered roles.
* E-commerce company eBay prepares to cut about 1,000. functions or around 9% of its workforce.
* Videogame software supplier Unity Software application to cut. about 25% of labor force, or 1,800 jobs.
* DocuSign strategies to lower its labor force by about. 6%, or 400 workers, with a bulk in its sales and marketing. organizations.
* Snap strategies to cut around 528 tasks or 10% of its. global workforce.
* Salesforce is laying off about 700 employees, or. roughly 1% of its international labor force.
* Network giant Cisco is preparing to restructure. its company which will consist of laying off countless. workers.
* Self-governing automobile innovation business Aurora Innovation. lays off 3% of labor force.
* Canada's BlackBerry plans more layoffs, in. addition to about 200 job cuts in the previous quarter.
* Satellite radio company SiriusXM plans to lower. workforce by about 3%, or about 160 functions.
* Bumble is set to get rid of 350 jobs or about 30%. of its workforce.
MEDIA
* Walt Disney's Pixar Animation Studios is set to. cut tasks as the studio has completed production on some shows.
* Comcast-owned British media group Sky prepares to. cut about 1,000 tasks throughout its businesses this year.
* The Los Angeles Times prepares to lay off 94 journalists.
* Paramount Global is preparing to carry out an. unspecified number of layoffs.
* Service Insider prepares to lay off around 8% of its personnel.
* Bell Canada prepares to slash 4,800 jobs.
FINANCIAL SERVICES
* PayPal Holdings is preparing to cut about 2,500. tasks, or 9% of its worldwide labor force this year.
* Payments firm Block Inc has actually started to cut. unspecified jobs.
* Citigroup is planning to minimize its headcount by. 20,000 people over the next 2 years. It has actually announced plans to. slash 716 functions in New york city towards that target.
* Investment banking giant Morgan Stanley is planning. to cut numerous tasks in its wealth management unit, an individual. familiar with the matter informed , adding that the cuts will. effect less than 1% of the division's workers.
* Exchange operator Nasdaq prepares to slash hundreds. of jobs as it integrates fintech company Adenza into its service.
* Asset manager BlackRock is set to cut about 3% of. its labor force however anticipates a larger headcount by the end of 2024.
CONSUMER AND RETAIL
* The world's biggest merchant Walmart plans to cut. hundreds of jobs at its home office and move a. bulk of its U.S. and Canada-based remote workforce to 3. offices.
* Cosmetics giant Estee Lauder plans to cut 3% to 5%. of its worldwide workforce.
* Wayfair plans to lay off 1,650 staff members, or about. 13% of its labor force.
* U.S. outlet store chain Macy's is cutting 2,350. tasks, closing five stores.
* Levi Strauss & & Co is preparing to slash 10% -15% of. global business tasks.
* Hershey's restructuring strategy will impact less than. 5% of its labor force.
* Nike will cut about 2% of its total workforce, or. more than 1,600 jobs, as the sportswear giant looks to cut expenses. after flagging weaker revenues this year.
HEALTH
* Novavax is cutting about 12% of labor force.
MANUFACTURING
* Defense professional Lockheed Martin is planning to. cut 1% of its jobs.
* United Parcel Service prepares to cut 12,000 jobs to. cut costs.
NATURAL RESOURCES
* U.S. miner Piedmont Lithium cuts 27% of workforce. in the cost-cutting plan.
* Canadian oil and gas pipeline company TC Energy has. laid off a few of its employees as part of a previously revealed. plan to integrate its natural gas pipeline systems.
* Canada-based crude pipeline operator Enbridge. stated it would reduce 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 global labor force, an internal memo. seen on Monday shows, as it faces falling. sales amidst a magnifying price war for electrical vehicles.
(source: Reuters)