Latest News
-
Britain and Czech Republic will work together to develop small nuclear plants
The UK and Czech Republic announced on Monday that they will explore the possibilities for small modular reactors (SMRs). This partnership could lead to Rolls Royce SMR exporting up to six units into the east European country. Last month, Britain pledged 2,5 billion pounds for the construction of SMRs. It hopes that this will help to increase energy security while helping the country achieve its climate targets and create export opportunities. The SMRs are made in factories with small parts that can be transported by barges or trucks. They are assembled faster and cheaper than large nuclear plants. In a statement issued by the UK Department for Energy Security and Net Zero, which also cited his Czech counterpart, UK Prime Minister Kierstarmer stated: "By working together with our Czech colleagues on small modular reactors we are supporting British engineering, strengthening the industrial base and putting the UK into a leading position for exporting the technologies of tomorrow." Rolls Royce won the contract to build Britain's SMRs last month. Great British Energy, Britain's state owned energy company, is expected to sign the contract and select a location for new plants later this year. Last year, Czech electricity producer CEZ announced that it would acquire a stake in Rolls Royce’s SMR business of around 20%. It also planned to install up to three gigawatts in the country. This is equivalent to six units. Each unit can power approximately one million homes. Starmer and Czech Premier Peter Fiala are hosting a roundtable discussion as part of Fiala's London visit, in order to promote closer links for trade and investment between the two nations. (Reporting by Susanna Twidale, Editing by Aidan Lewis).
-
Earnings and tariffs are a focus for the market, as well as inflation data.
MSCI's global index of equity prices edged lower on Monday, while U.S. Treasury rates edged higher. The latest U.S. Tariff threats kept investors on their toes as they awaited inflation readings due later this week and the beginning of the earnings season. After Donald Trump threatened to impose a 30 percent tariff on imports of goods from the European Union, Mexico and Canada starting August 1, the euro briefly fell to its lowest level in almost three weeks. The dollar index remained stable. The threat of tariffs caused European shares to fall on Monday. The EU announced that it would suspend countermeasures against U.S. Tariffs until early August, and continue to push for a negotiated solution. However, Germany's Finance Minister called for a firm response if levies were implemented. This week the U.S. earnings period begins, and the banks are leading the way. According to LSEG, S&P profits are expected up 5.8% compared to the previous quarter. Now, it's all about the earnings season. They don't know what to expect. They want to remain optimistic. Robert Pavlik is a senior portfolio manager with Dakota Wealth, Fairfield, Connecticut. He said that earnings seasons are usually better than expected. However, he also noted that trading values were "a little expensive compared to the 5-year average". The money manager said that people are waiting to see what happens next, given the recent announcements of tariffs. At 10:54 am on Wall Street, the Dow Jones Industrial Average dropped 53.36 points or 0.12% to 44,318.15, while the S&P500 fell 6.66 points or 0.11% to 6,253.09. The Nasdaq Composite increased 18.05 points or 0.09% to 20,603.58. The MSCI index of global stocks fell 0.12% or 1.07 points to 921.49, while the pan-European STOXX 600 fell 0.26%. POWELL PRESSURE Trump has increased political pressure to ease interest rates more aggressively, despite the fact that U.S. Federal Chairman Jerome Powell had signalled patience on this issue. Kevin Hassett, the White House's economic adviser, warned Trump over the weekend that renovation costs at the Fed headquarters in Washington could be a reason to fire Powell. Trump said that Powell's resignation would be great. The yield on the benchmark 10-year U.S. notes increased by 1 basis point, to 4.433% from 4.423% at the end of Friday. Meanwhile, the 30-year bond's yield rose by 2.2 basis points, to 4.9791%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve fell by 1.8 basis points, to 3.896% from 3.914% at late Friday. Investors are waiting for the U.S. consumer prices data for June due Tuesday. They will also be watching for any upward pressure coming from tariffs. The data on producer prices and import prices, which are due this week, will provide a glimpse of the impact that tariffs may have on supply chain costs. Retail sales figures will also give a good indication of consumer health. The dollar index, which measures greenbacks against a basket including the yen, euro and yen, increased 0.09% at 97.98. The dollar rose 0.07% against the Japanese yen to 147.5. The Mexican peso fell 0.65% against the dollar to 18.767. Mexican President Claudia Sheinbaum is confident that a deal can be reached by the deadline of August. Bitcoin reached the $120,000 mark for the first and last time. It was up by 1.48% to $120,891.36. Oil prices dropped on Monday, after reaching their highest level in the last three weeks. Investors were watching for further U.S. sanction against Russia and tariffs that could affect global supply. U.S. crude dropped 0.64% to $68.01 a barrel. Brent was down to $70.07 a barrel, 0.41% lower on the day. The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have climbed to their highest level since September 2011, Spot gold dropped 0.41% to $3341.63 per ounce. U.S. Gold Futures increased 0.04% at $3,357.20 per ounce. (Reporting and editing by Christopher Cushing; Sharon Singleton, Ali Williams, and Ali Williams.
-
16 people are killed in attacks on Syrian security forces sent out to quell sectarian conflicts
The defence ministry reported that 16 members of Syria's Security Forces were killed in Sweida (a predominantly Druze city), after they were deployed to quell deadly inter-sectarian violence which local media reported resumed on Monday. After months of tensions, Sunday's clashes between Druze tribal fighters and Bedouin militiamen marked the first instance of sectarian violence in Sweida. The defence ministry issued a press release in which it said that "outlawed group", who were not identified, had attacked several of its units before dawn. It claimed that its forces had responded to the attack, and pursued groups who refused to cease hostilities or continued to target security personnel. In a previous statement, the Defence Ministry said that the fighting on Sunday had left 30 dead. This prompted Syria's Security Forces to send units into the city in order to restore calm and ensure safe passage for any civilians who wanted to leave. Sweida24, a local news outlet, reported that violent clashes erupted again on Monday. According to a second source, the Syrian army will try to establish state control in the entire province to stop any further violence. However, this may take several days. The latest bloodshed was a result of sectarian violence in Syria. Minority groups are increasingly afraid since islamist-led rebels ousted President Bashar Al-Assad and installed their own government. Sunni Muslim Arab groups that fought Assad in the war have agreed to dissolve and become part of the Defence Ministry. However, efforts to integrate armed groups from minorities - such as Druze and Kurds – are largely stalled. Israel's policy of not allowing Syria's army to move south of Damascus, and insisting that Sweida along with neighbouring provinces form a demilitarized area has complicated efforts in southern Syria. In a statement published by state media, Interior Minister Anas Khattab stated that "the absence of state institutions, particularly military and security institutions is the major cause of ongoing tensions in Sweida" and its surrounding areas. Witnesses said that the violence on Sunday was a result of a series of kidnappings including Friday's abduction of Druze merchants on the highway connecting Damascus and Sweida. Khalil Ashawi, Maya Gebeily and Nayera Abdallah in Beirut; Tala Ramadan and Aidan Lewis in Dubai contributed to the report.
-
US Court of appeal delays the sale of Argentina's 51% YPF share
A U.S. Judge on Monday temporarily halted the enforcement of an order requiring Argentina's 51% stake in oil company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District Court Judge Loretta Preska's decision in Manhattan provides temporary relief for the cash-strapped South American nation, which warned that its economy would be unstable if it was forced to give up YPF's stake. Preska had originally scheduled a turnover for Monday but extended the deadline until July 17 in order to give time to appeal. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina is appealing the judgement. Preska, on June 30, ordered that the government turn over its YPF stake in 14 days. Burford said Argentina's years of evasion and a commercial exception justified a turn-over. Argentina said in a filing to the court on Thursday that "the stakes couldn't be higher." It warned that forcing a turn-around would irreparably damage its sovereignty, interfere in foreign relations, violate the international law, and expand wrongly the power of U.S. Courts. The Argentina compared a turn-over to a foreign judge ordering the U.S. Government to ship gold stored at Fort Knox out of the country, because this court misinterpreted U.S. laws. It also claimed that it would be unfair for the country to relinquish its control of the largest energy company in the country, even if it won the case. Reporting by Jonathan Stempel, New York; Editing by William Mallard
-
China informs EU of new climate targets coming in autumn
Teresa Ribera, the green chief of the European Commission, said that Chinese officials told the European Union their country would produce a national plan in the fall to combat climate change. China and the EU missed the February deadline for submitting new national climate change goals to the United Nations. These targets set out the amount a country would reduce its greenhouse gas emission by 2035. They will be used to evaluate global progress in avoiding catastrophic levels of warming. Ribera told reporters that both parties were working to achieve their national determined contributions (NDCs) ahead of the U.N. climate summit in November. Teresa Ribera oversees EU climate policy. She said, "They have committed themselves to an NDC which is comprehensive, in that it includes the entire economy, and takes into account all greenhouse gasses." She said that they would be releasing a concrete update in the fall. The Chinese foreign ministry has not responded to an immediate comment on the timeline. In April, President Xi Jinping stated that China would announce their new goal prior to COP30. He did not specify a specific date. Despite the fact that U.S. president Donald Trump pulled his country from global climate talks, and reduced U.S. funding for clean energy, Brazil is hosting COP30. It has tried to convince major economies to set aggressive targets and reaffirm commitments to combat climate change. Most nations still haven't announced their climate plans. This month, the EU proposed a climate target for 2040. The 27 EU member countries will now negotiate with the European Parliament. The EU is yet to confirm the 2035 climate target. (Reporting and writing by Liz Lee and Kate Abnett, Ethan Wang, Kirsty Donovan, Alison Williams).
-
Ministry says heatwaves in Spain have caused 1,180 deaths over the past two months.
The Environment Ministry reported on Monday that high temperatures have caused 1180 deaths in Spain over the last two months. This is a significant increase compared to the same period in 2017. Data cited by the report showed that more than half of those who died were women and that most were older. Galicia was the most affected region, followed by La Rioja, Asturias, and Cantabria. These regions are all in the northern half, where temperatures in summer have been rising in recent years. Spain, like other Western European countries, has experienced extreme heat over the past few weeks. Temperatures often reached 40 degrees Celsius. In a statement, the Ministry of Health cited data from the Carlos III Health Institute to show that the number of people who died due to heat-related reasons between May 16th and July 13th was 1,180 compared to 70 during the same period in 2020. The first week of July saw a significant increase in deaths. The ministry stated that the data showed an "event of exceptional intensity" characterized by a rise in temperatures averages unprecedented in history and an increase in deaths attributable heatwaves. In the data period, there were 76 alerts of extreme heat compared to none a year ago. According to the Carlos III Health Institute, 2191 deaths in Spain were caused by heat last summer. The data from Spain follow a rapid scientific study published on 9 July that stated around 2,300 deaths due to heat-related causes in 12 European cities over a 10-day period leading up to 2 July. The study by Imperial College London and London School of Hygiene and Tropical Medicine did not use the same methodology that the Spanish data.
-
Gold prices remain stable after a three-week high
The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have also risen to their highest level since September 2011, Gold spot was unchanged at $3,356.95 an ounce as of 937 am EDT (1337 GMT) after having reached its highest level since earlier in June. U.S. Gold Futures remained at $3,365.30. Bart Melek is the head of commodity strategy at TD Securities. He said that after a price hike, there are some profits being taken, but overall, gold remains well-bid. The European Union, South Korea and President Donald Trump are working together on trade agreements. Trump intensified his trade war Saturday by announcing he would add a 30% tariff to most imports coming from Mexico and the EU from next month. He also issued similar warnings against other countries, including Japan and South Korea. Investors are now awaiting Tuesday's U.S. Consumer Price Index and Wednesday's Producer Price Index reports for clues as to the Federal Reserve's possible policy path. Market participants currently believe that there is a high likelihood of a 50 basis-point rate cut by the end this year. Melek continued, "We have heard the U.S. president continue to make comments that he wants to see lower rates of interest and I believe that in the end he is quite supportive for gold." In a low interest rate environment, gold's appeal increases because it is not a yielding asset. Silver spot gained 1.1%, reaching its highest level since the September 2011 session. Nitesh Sha, a commodities strategist at WisdomTree, said that silver has solid fundamentals. The metal is in a deficit of supply and the demand for solar remains strong. The gold-to-silver ratio is approaching 86. Palladium and platinum also fell, with palladium down 2.6% at $1,183.75 after reaching a record high of more than eight months earlier today. (Reporting and editing by Nick Zieminski in Bengaluru, Anushree mhukerjee and Sarah Qureshi)
-
Alcoa faces a loss of up to $110 Million as the restart of Spain's aluminium smelter is delayed until mid-2026
Alcoa Corp announced on Monday that it anticipates a loss of up to $110,000,000 due to the delay in the restarting of its San Ciprian Aluminium Smelter in Spain. The plant's production was halted in 2021 because of high electricity prices. The plant was in the process to be restarted, but this was delayed because Spain was hit with a nationwide blackout on the 28th of April. This disrupted the smelter as well as an adjacent refinery. The smelter is operated by Alcoa in a joint venture with Ignis Equity Holdings since March. Alcoa now expects a net loss between $90 and $110 million by 2025. This is tied to the smelter. This includes the pre-tax impact and non-controlling interests, translating into a loss between $0.35 and $0.42 per share. The associated cash used for operations is expected to be between $110 and $130 millions. The companies delayed their restart efforts until they received further assurances from Spain's government about the cause of outage and reliability of the national grid. The company website states that the San Ciprian facility includes an alumina factory with a 1.5 million tonne capacity per year. This plant supplies Alcoa, other producers and external customers from non-metallurgical industries such as ceramics and chemicals. The primary aluminium smelter adjacent has a capacity of 228,000 tons per year. Reporting by Sherin Varghese, Bengaluru. Editing by Susan Fenton
What is Patriot missile system? How does it help Ukraine?
Boris Pistorius, German Defence Minister, will discuss with Pete Hegseth, U.S. Secretary for Defence of Defence in Washington the possibility that Germany could pay for American Patriot air defense systems for Ukraine.
Donald Trump, the U.S. president, said on Sunday that the U.S. will send an unspecified number of Patriots into Ukraine and the European Union will pay for them.
The Ukrainian president Volodymyr Zelenskiy asked for additional defensive capabilities including Patriot missiles and systems to counter daily Russian missile and drone attacks.
Here are some important facts about the Patriot
What is the Patriot System?
The Patriot is a mobile air-to-air missile defense system that was developed by Raytheon Technologies. Its full name is Phased Array Tracking Radar to Intercept on Target.
The system has been in use since the 1980s and is considered to be one of the most sophisticated air defence systems available in the U.S.
A typical battery consists of radar and control systems as well as a power unit and launchers. The system can intercept cruise missiles or tactical ballistic missiles depending on which interceptor is used.
How does the Patriot work?
The capabilities of the system vary depending on which interceptor is used.
The PAC-2 uses a blast fragmentation warhead which detonates near the target. However, the PAC-3 missiles use a more precise technology that directly hits the target.
Although it is unclear what type of Patriot systems Ukraine has received, it is likely to have at least some of its newer PAC-3 CRI interceptors.
NATO reported in 2015 that the radar system has a range exceeding 150 km (93 mi).
The Patriot missile was originally not designed to intercept hypersonic weapons, and Raytheon is yet to confirm if the Patriot is capable of doing so. However, the U.S. confirmed in May 2023 that Ukraine used the Patriot to shoot down the Russian Kinzhal, which Moscow claims to be hypersonic.
Raytheon's website reports that since January 2015 the Patriot has intercepted over 150 ballistic missiles during combat operations.
HOW WIDELY is it used?
According to its website, Raytheon has delivered more than 240 Patriot Fire Units.
According to Raytheon these have been shipped into 19 countries including the U.S.A., Germany Poland, Ukraine Japan, Qatar, Saudi Arabia, and Egypt.
Axios reported in January that the U.S. transferred 90 Patriot interceptors to Ukraine from Israel.
How much does it cost?
According to the Center for Strategic and International Studies, a newly produced Patriot battery costs more than $1 billion. This includes $400 million for a system and $690 for missiles.
CSIS estimates that Patriot interceptors cost around $4 million each.
Why does Ukraine want more patriots?
Kyiv continues to ask its Western allies for additional air defence systems in order to protect civilian infrastructure from Russian drone and missile attacks.
Patriots can be an expensive way to take out low-budget drones, even though they are effective in intercepting missiles and planes. Officials in Ukraine say that they are still essential for defending critical targets against Russia's increasing long-range attacks.
Russia claims that it views the Patriots as an escalation. Maria Zakharova, a spokeswoman for the Foreign Ministry, said in May that providing more systems to Ukraine could delay peace. (Reporting and editing by Isabel Demetz, Jesus Calero)
(source: Reuters)