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Brazil increases the mandated level for ethanol and biodiesel in Brazil, Energy Ministry says
According to Pietro Mendes of the Mines and Energy Ministry, the National Energy Policy Council of Brazil (CNPE) approved on Wednesday increasing the percentage of ethanol in gasoline from 27% to 30% and the amount biodiesel to diesel from 14% to 15%. Mendes stated that the changes in fuel mixtures will be effective from August 1. Before This year The CNPE has decided to keep the biodiesel mix at 14%, despite industry groups' objections. Brazil's Ministry of Mines and Energy said in March that increasing the percentage of gasoline from 27% to 30% was a good idea Tests are a good way to back up your claims demonstrating "consistent performance", "real environmental impact" benefits." The International Energy Agency states that biofuels such as ethanol and biodiesel are important in decarbonizing global transport and reducing greenhouse gas emissions linked to burning nonrenewable fuels. Reporting by Ana Mano, Pedro Fonseca and Oliver Griffin Writing by Margueritachoy
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Owner says that the Three Mile Island nuclear power plant could restart in 2027.
Constellation Energy executives said that the former Three Mile Island nuclear plant in Pennsylvania could restart in 2027. This is about one year earlier than originally planned. The plant was put on a rapid track to connect with the regional grid. Constellation signed a contract in September last year to power Microsoft's data centers. This will pave the way for the reopening of Three Mile Island. Three Mile Island is widely known as the location of a partial nuclear meltdown that occurred there in 1979, which froze the industry. Constellation’s 20-year agreement to purchase power from Microsoft is indicative of the lengths to which Big Tech will go to support its artificial intelligence expansion. This began intensifying a year and a half ago. The reactor at Three Mile Island that is reentering service, and which will be renamed Crane Clean Energy Center was not involved in the 1979 accident. It shut down in 2019 due to economic reasons. Constellation CEO Joe Dominguez stated that "we're on the right track to making history ahead of time, helping America achieve economic growth and energy independence as well as winning the global AI race." Constellation announced the restart last year and said that it expected the plant would reopen in 2028. Officials from the company stated that they expect the process to be slowed down by the wait times associated with connecting projects to the regional power grid, operated by PJM interconnection. PJM can have a long queue of power projects. This is essentially an application and engineering study to connect a power station to the broader network. PJM covers 13 states, the District of Columbia and about 67,000,000 customers. In order to relieve some of this bottleneck, especially as data centers are rapidly spreading across PJM territory, the largest grid operator in the United States has accelerated its interconnection processes for selected projects. Nuclear power is gaining popularity after years of decline. New York announced this week that it intends to build a nuclear power plant. It would be the first in a decade to be built. In spite of the excitement, historically nuclear power plant construction has been overbudget and behind schedule. At least one nuclear power plant, the Palisades plant in Michigan, is currently being restarted. (Reporting and editing by SonaliPaul; Laila Kearney)
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As geopolitical tensions decrease, the focus shifts to US data
The gold price eased on Tuesday as the demand for safe-haven assets decreased due to a ceasefire agreement between Iran and Israel. Market participants were cautious in advance of important U.S. data. Gold spot was down 0.3% to $3,314.45 an ounce as of 0934 am EDT (1334 GMT), after the previous session saw prices at their lowest level in more than two weeks. U.S. Gold Futures dropped 0.2% to $3328.10. Daniel Pavilonis is a senior market strategist with RJO Futures. He said that despite the potential and momentum in the markets, gold has never reached new highs. "So, now I think that the path is more on the downside. It may reach $2,900 if the Middle East doesn't escalate." Donald Trump, the U.S. president, praised the end of war between Iran and Israel. He said he expected a new relationship with Tehran to prevent it from re-building its nuclear program. S&P 500 index and Nasdaq rose on Wall Street, hovering close to a record high. Investors will also be watching the second day's testimony of Federal Reserve Chairman Jerome Powell to Congress, which is scheduled to begin at 10:00 am ET. ET. Powell said on Tuesday that the decision to cut rates can only be made after considering the impact of tariffs, the inflation rate and the weakness in the labor market. The U.S. jobs and GDP data are scheduled for release on Thursday. Meanwhile, the Price Consumption Expenditure data (PCE) is due to be released on the Friday. Traders are closely watching this data to gauge the Fed’s future policy direction. Market participants currently believe that there is a greater than 85% likelihood of a September rate cut. Bullion is more likely to perform well in periods of uncertainty or when interest rates are low. Palladium fell 1.8% to 1,046.73 dollars. Platinum lost 0.8% and dropped to $1305.74. (Reporting by Sarah Qureshi in Bengaluru; Editing by Tasim Zahid)
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Andy Home: LME's position rules are a reflection of a changing metals market
London Metal Exchange (LME) has tightened the regulatory screws against holders of long positions at a time when both copper and aluminium contracts are in turmoil. The unique date structure of the LME exchange has been under severe stress as traders have increased their bets despite the inventory in LME's warehouses being depleted. It's not a coincidence that these two contracts have been the most affected. Tariffs and sanctions have caused massive distortions in the physical markets for copper and aluminum. The LME, having just recovered from the 2022 nickel crisis, is keen to avoid another one. Since it cannot do much about tariffs or sanctions either, managing the effects is the best option. As with any 148-year-old market, there is always the danger that tinkering with such a complex eco system can have unintended consequences. CORNERING the Future The copper market's turmoil this week is a classic example of a massive clash of positions ahead of the cash date. On Monday, the "tom-next spread", which is a position roll for overnight, blew out to $69 per metric tonne. This helped to inflate backwardation over the cash-to-3-months period The price of a ton has increased to $397, the highest since 2021. The week began with one entity having a cash position of 80-90% or more of the available stocks. They are designed to stop anyone from cornering the market and distorting prices with a position so dominant. The LME Special Committee introduced new rules on Friday that extend the lending cap beyond the cash date to the next monthly prompt. These are temporary, at least for the moment. The recent pressure on the aluminium markets was not focused on the LME rolling cash date, but rather on the monthly prompt date for June. It's clear that this is not the only position with a mega-long term contract which has caused concern to LME senior management. The LME stated that there have been "a few occasions" where significant positions were held in the near-by prompt dates, and the special committee "at times" has directed holders to reduce their holdings "relatively to the prevailing stock level," it said. The rub. Copper and aluminium are in short supply. TARIFF DISTORTION Since the beginning of 2025, LME copper stock has shrunk 65% to 94 675 tons. The amount of tonnage available is at a 2-year low of 54 525 tons. This isn't due to a diminished global availability, but rather reflects an enormous redistribution in global inventory. Since February, when U.S. president Donald Trump began a Section 232 investigation into U.S. imports of copper, physical metals have been flowing to the United States in order to take advantage of the premium commanded by CME's U.S. Customs-cleared Copper Contract over the LME’s international product. The U.S. imported refined copper in April jumped above 200,000 tonnes, marking the highest arrival rate of this decade. LME warehouses were emptied to fuel this physical tariff trading. CME stocks have nearly doubled to 184 464 tons this year, their highest level since August 2018. SANCTIONS IMPACT The prospect of U.S. Tariffs has disrupted global copper flows. However, sanctions against Russian metal have disrupted those for aluminium. The LME stopped all deliveries of Russian aluminum produced after April 2024 when the United States and Britain announced sanctions against Rusal, a Russian aluminium producer. The Russian metal that was already part of the LME could be traded, but it wasn't as popular as other brands. Since then, there have been several dogfights over the available non-Russian stock. Each involved large positions and spread volatility. The LME's aluminium stock is now at its lowest level since October 2022. The majority of the physical stock that was awaiting loading has been removed, and what is left is mostly Russian metal. No sign of a replenishment is imminent. LME off warrant stocks, which usually rise when visible inventories fall as metal is redirected to cheaper warehouse agreements, are also lower than at the beginning of the year. Since March, there haven't been any significant new deliveries to the LME warrant. Since last year, the Russian liquidity has dried up and other brands may be reluctant to give them up in LME clearing. The LME's global supply function is dependent on a fluid, globally distributed physical supply chain. This simply does not exist at this time. Reduced Incentives LME's lending guidelines has always been criticized for favoring holders of short positions over those with longs. The regulatory focus is further distorted by extending the lending restrictions to dominant long positions in the first month of the curve. Remember that the 2022 Nickel Blow-out was caused by a dominant short, not a dominating long. The LME has stepped up its efforts to avoid another crisis, given the mismatch that is growing between the size of the position and the available inventory. It is possible that smoothing out the distortions the LME perceives in its price-setting function could reduce the financial incentives for metals to be delivered to the supposed market of last recourse. It's important to note that the United States is not receiving any Russian aluminum or copper. The author is a columnist at
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Sino-Moroccan COBCO starts producing EV batteries
The Sino-Moroccan Company COBCO announced on Wednesday that it has begun production of lithium-ion batteries components at its plant in Jorf Lasfar. This is located 125 kilometers (78 miles south of Casablanca). COBCO, a joint venture of Moroccan investment fund Al Mada with CNGR Advanced Materials (a producer of battery materials), is a Moroccan-owned company. Morocco's proximity with Europe, its automotive industry, the free trade agreements, and the availability of phosphates, cobalt, and other materials make it an attractive destination for Chinese battery manufacturers. In a first phase, the plant will produce two key components for lithium-ion batteries: nickel-manganese-cobalt (NMC) and precursor cathodes (pCAM), COBCO said in a statement. It said that the materials would be made from nickel, manganese and cobalt, which are essential components for stationary energy storage and EV batteries. A source familiar with the project said that the $2 billion facility will eventually have a capacity of 70 gigawatt hours per year, which is enough to outfit one million cars. The plant aims to reach an annual production capacity of 120,000 tonnes of NMC precursors and 60,000 tonnes of lithium-iron-phosphate (LFP) cathodes. The company stated that the production of LFP cathodes will begin "as quickly as a regional LFP batteries ecosystem emerges." COBCO’s plant is the first to start production in Morocco’s drive to become a hub of EV battery supply chains, while it tries to adapt its auto industry to EV requirements. Gotion High Tech, a Sino-European manufacturer of EV batteries, is building Africa’s first gigafactory, in Morocco. The investment totals $6.5 billion and production will begin in the third quarter 2026. Hailiang, a Chinese auto battery manufacturer, and Shinzoom, a Shinzoom company from China announced plans last year to build two separate factories near Tangier that would produce copper and anodes. BTR New Material Group, a Chinese battery manufacturer, plans to manufacture key components cathodes at Tangier. Official figures show that Morocco has Stellantis and Renault car production plants. The automotive industry exports are expected to reach a record of 157 billion dirhams (17 billion dollars) by 2024. Reporting by Ahmed Eljechtimi Editing Mark Potter
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WEC Energy delays coal power plant retirement due to surge in power demand
We Energies is a subsidiary of WEC Energy and plans to extend the operation of units 7 & 8 at the Oak Creek Coal-fired Power Plant in Wisconsin until the end of 2026. Now, the plant that was to be retired at the end 2025 will have units to meet the high energy demand. We Energies President Mike Hooper stated that "just this month, National Grid experts raised the alarm about elevated risks of electricity shortages and prices spikes due plant closures and increased energy demand in Upper Midwest." In April, U.S. president Donald Trump signed executive orders to boost domestic coal production in response to the rising demand for power, which includes data centers required by artificial intelligence technologies. According to the Institute for Energy Economics and Financial Analysis, Trump's executive order could delay the closing of coal-fired plants and encourage restarting of 102 coal-fired units that were recently closed. We Energies said that it was actively planning to build more than 6,300 MW of new power using wind, solar and natural gas over the next five-year period in order to meet customer demand and improve grid reliability. (Reporting and editing by Sahal Muhammad in Bengaluru, with Pooja menon reporting from Bengaluru)
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EU revises regulations to expand space market
The European Commission presented the EU Space Act on Wednesday, a much-anticipated overhaul of its rapidly-growing space industry's regulations. The legislation is designed to create a single space market in the EU for companies that offer space services, while also enhancing efforts to become more competitive against the United States and commercial space powers. The plan also includes measures to combat the problem of space congestion, which is a growing issue in an era when thousands of satellites in orbit are moving around and where 128 million pieces are floating in the air. The European Commission stated that the legislation will also address threats from electronic interference and cyberattacks, as well as promote environmentally sustainable space resource use. The bill would mandate that satellites be disposed of safely at the end their operational lives, require space operators to conduct risk assessments and implement cybersecurity measures, and set rules for measuring the environmental impact. Andrius Kubilius, EU space and defense commissioner, said: "The 21st Century will be the Century of Space and the New Frontier - the New Frontier: Space." We are at the beginning of a revolution in space. "Space will soon be massive." These rules will be applicable to EU space assets, national space assets as well as to non-EU operators that offer services in Europe. The European Parliament and EU Council must approve the proposal as law. (Reporting and editing by Tim Hepher, Ed Osmond, and Makini Brice)
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US foreign investment slump: anomaly or warning? McGeever
The 'dedollarization' debate has largely focused on the foreign exposure of U.S. stocks and bonds. Investors shouldn't ignore the foreign direct investment flows. This is the traditional sticky capital which may be sending out warning signs. Foreign direct investment (FDI), is when an overseas entity purchases the assets or increases its holdings of a foreign company. This can be done by purchasing machinery, plants, or a controlling interest. FDI, therefore, is a more stable investment than portfolio flows. Donald Trump, the U.S. president, says that he has brought record-breaking foreign investment to his country. The White House website has a "non comprehensive running list" of new U.S. investments since Trump began his second term. The total running is in the trillions and includes pledges made by several foreign countries. The United Arab Emirates (UAE), Qatar, Japan, and Saudi Arabia have all pledged more than $4 trillion of investments in the United States. Trump said during his trip to the Middle East in the last month that the U.S. was on track to receive $12-13 trillion in investments from around the world. This includes "projects... mostly announced...and some to be revealed very soon." In time, these flows will be revealed in their entirety. Official figures released on Tuesday revealed that FDI fell to $52.8 Billion in the first three months, the lowest level since the fourth quarter 2022. This is well below the average quarterly figures of the last 10 and 20 year. Commerce Department figures showed that U.S. current-account deficit widened in the third quarter to a record $450,2 billion, or 6%, of U.S. Gross Domestic Product. FDI inflows only covered 10% of this shortfall. Should the Trump Administration be concerned? Tariff Distortions The short answer to this question is most likely not, or at least not just yet. FDI flows tend to be smaller than portfolio investments in equity and fixed-income securities. Therefore, from the perspective of funding a current account deficit, FDI declines are not as concerning. If foreign investors also buy fewer U.S. Securities, then capital will need to be raised from somewhere else to cover the deficit. Additionally, the balance of payments in America in the first quarter were distorted because domestic consumers and business leaders rushed to import goods before Trump's tariffs kicked in later in the year. Trump is betting that the deficit will shrink in this year and beyond, as his "America First" policies encourage more "onshoring", as domestic firms bring production home. The weaker dollar also helps U.S. Manufacturing by making exports competitive. The boom that follows will bring in investment from both companies and governments abroad. Theoretically. These dynamics are not only one-sided. Citi estimates that the European Union will account for 45% in 2023 of all U.S. FDI. Combining the European continent's German fiscal splurge with U.S. Tariffs and concerns about 'dedollarization' could easily reduce that flow. Section 899, a possible tax of 20% or more on foreigners' U.S. earnings that could be included in Trump's budget plan, is another potential risk for U.S. bound FDI. Tax Foundation reported in May that Section 899 "would hit inbound investment that makes up more than 80% of U.S. FDI inbound stock." Section 899 may be diluted by industry pushback, but it still remains a cloud over U.S. investments. Citi reports that the U.S. will be the largest recipient of FDI in the world by 2023. This is up from 15% just before the pandemic. Its economy is one of the biggest in the world. It's a hub for innovation, cutting-edge technology, artificial intelligence, and money making potential. This will always attract FDI. It remains to be determined whether it will attract as much FDI in the new environment. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
Japan's Nikkei closes at a 4-month high, as shares of chip makers follow US peers higher
The Nikkei share index ended Wednesday at a record high of more than four months, as stocks related to chips followed the overnight gains made by their U.S. counterparts.
After a flitting back and forth between modest gains, the Nikkei closed at 38,942.07 - its highest level since February 19.
The Topix index as a whole rose 0.03% to 2,782.24
Shigetoshi kamada is the general manager of the research department at Tachibana Securities. He said that the Nikkei fluctuated between gains and losses as investors sought to profit from gains made in the previous session.
Investors want to cover short positions by buying stocks as long as there are no negative news.
After U.S. president Donald Trump announced a ceasefire agreement on Monday night, the Nikkei ended Tuesday higher after snapping a three-day loss streak.
The truce seemed fragile. It took Israel and Iran hours to admit they had accepted the ceasefire, and both accused the other of violating its terms.
Investors viewed the ceasefire as a sign that tensions were de-escalating, and the U.S. stock market rose more than 1% over night.
Chip-related stocks rose, following a 3.8% increase in the U.S. Philadelphia Semiconductor Index.
Advantest gained 3.32%, while Tokyo Electron rose 3.26%. These two companies were the main contributors to the Nikkei's gains.
SoftBank Group, a technology investor, fell by 1.73% and weighed the Nikkei down the most. Olympus fell 10.6% after U.S. Food and Drug Administration sent out an alert about certain medical devices manufactured by the medical equipment manufacturer.
Toyota Motor shares fell 1.18%.
On the Tokyo Stock Exchange, more than 1,600 shares traded on its prime market rose 45%, fell 50%, and remained flat 4%.
(source: Reuters)