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BOJ to make decision on Iran deal in the near future
Asian stocks climbed a little on Tuesday, after rallying the previous session due to news of a peace agreement between Iran and the U.S. Investors turned their attention to'several' central bank decisions such as an expected rate increase from the Bank of Japan. Early trading in this region followed a familiar trend, as markets began to take a more measured approach on Gulf developments after the initial excitement surrounding the preliminary agreement reached between Washington and Tehran started to fade. Brent crude futures rose 51 cents or 0.6% to $83.74 per barrel, reflecting the cautious approach. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence that transit will resume through the Strait of Hormuz. MSCI's broadest index of Asia-Pacific stocks outside Japan gained 0.2% with Korean shares leading the gains. Japan's Nikkei was down by 0.2% from its record high, as the e-mini S&P 500 futures fell 0.1%. Although the announcement by Donald Trump of a nuclear deal with Iran brought relief to investors on Monday, Washington is now on a collision course with Israel. Analysts from Westpac said in a research report that while the deal was a diplomatic success, its durability would be tested over time. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. Stocks and bonds rose overnight on Wall Street on the optimism surrounding the deal. The S&P 500 rose 1.7%, the Nasdaq Composite soared 3.1% and both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. Traders are waiting for several important central bank decisions. This includes the Bank of Japan which will raise interest rates on Tuesday to a record high. After the meeting, Deputy Governor Shinichi Uchida is scheduled to hold a briefing for journalists. Governor Kazuo Ueda has been undergoing medical treatments and will not be able to attend. In a research report, analysts at Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on current conditions. The note stated that "We expect the Deputy Governor Uchida press conference and the reasoning he uses for his rate-hike announcement to be heavily influenced by Governor Ueda’s speech on June 3," "Mr. Uchida will also follow the governor's remarks in discussing future policy decisions." According to a survey of economists, the Reserve Bank of Australia is likely to stop its tightening cycle at a later meeting. The?U.S. The dollar index, which measures greenback strength against a basket six currencies, has held steady at 99.66. The yield of the 10-year Treasury Bond in the United States was up by 0.8 basis points at 4.475%. Gold rose 0.2% to $4,313.87. Bitcoin fell 0.3% to $66,245.97 while ether dropped 1.2% to $1.793.70. (Reporting and editing by Shri Navaratnam.)
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Concerns about US-Iran Peace Deal, Restored Supply, and Oil Prices are causing a rebound in the price of oil
The oil prices rose on Tuesday due to concerns over the lack of detail in a preliminary agreement that would end the war between Iran and the U.S. Brent crude futures rose?26 cents or 0.3% to $83.42 per barrel. U.S. West Texas Intermediate was up 46 cents or 0.3% to $81.12 per barrel as of 0108 GMT. Oil prices dropped by almost 5% on Monday to their lowest level since March 4. U.S. president Donald Trump announced that a memorandum-of-understanding had been signed to end the U.S. and Israeli war with Iran. The conflict shut down the Strait-of-Hormuz, which carried about one-fifth the world's supply of oil before the conflict. The full details of the memo have not yet been made public and there hasn't been a truce permanent. Early indications are that the agreement will reopen the Strait of Hormuz, which has been closed for the past 60 years. It will also extend the ceasefire period by 60 days. This would allow negotiators the opportunity to address difficult issues such as the future of Iran’s nuclear program. Masoud Pezeshkian, the Iranian president said that the U.S. and Iran memorandum was "an important step" towards stopping the fighting. However, a final agreement on a lasting ceasefire "has yet take shape." Tim Waterer is the chief market analyst for KCM Trade. He said that the market will likely show some restraint in regards to the further unwinding the risk premium in energy markets. According to a senior Iranian official, Iran will freeze its nuclear activities until a final deal is reached. This includes refraining from further enriching uranium or expanding nuclear facilities. It is unclear, even with the current agreement how quickly the curtailed supplies will be able return to the market. Tony Sycamore is a market analyst at IG. He said, "The path to normal supply flow remains far from'straightforward. Sycamore said that clearing mines, restoring marine insurance coverage and allowing vessels and operators to feel comfortable returning to the Gulf would all take some time.
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US Air Force B-52 Bomber Crashes in California, 8-member Crew Presumed Dead
The base reported that the U.S. Air Force B-52 Stratofortress Bomber crashed Monday, shortly after takeoff, from Edwards Air Force Base, located in Southern California's Mojave Desert. All eight crew aboard are presumed dead, according to the base. Edwards stated in a press release issued four hours after it crashed that the eight-engine jet aircraft was on a test mission. It had been designed to carry conventional and nuclear bombs. Aerial footage from the crash site, located about 100 miles north of Los Angeles (161 km), showed a large, smoldering area of desert floor, roughly the size of an American football field. An emergency vehicle could be seen driving around the perimeter of the scene. The footage did not show any large debris. Air Force B-52 Stratofortress with eight passengers on a routine testing mission crashed after take-off today at 11:20 am (PDT). The base posted an 'update' on X saying that initial indications were that the crash would not be survivable. The Air Force said that an "emergency response" team was at the scene and that officials were "working hard to account for all personnel." The Air Force stated that the cause of this crash is under investigation. Boeing's Stratofortress is a subsonic, long-range aircraft. According to the U.S. military, it has been the backbone for the strategic bomber force of the U.S. According to an Air Force factsheet, the swept-wing aircraft can carry munitions such as cluster bombs and "gravity bombs" at heights up to 50,000 feet (15.166 meters). The fact sheet stated that the B-52 is capable of performing strategic attacks, close-air-support, air interdictions, offensive counter-air, and maritime operations in a conventional conflict. According to the Bureau of Aircraft Accidents Archives in Geneva, an organization that collects data on global aviation accidents, Monday's crash was the first of its kind since the same type of bomber crashed onto the island of Guam back in May 2016. The seven crew members on board the aircraft all survived. The Air Force only has the H-model B-52 in its inventory. According to the military, it is assigned to both the 5th Bomb Wing in Minot Air Force Base (North Dakota) and the 2nd Bomb Wing in Barksdale Air Force Base (Louisiana), both under the Air Force Global Strike Command. It also reports to be assigned to Barksdale's 307th Bomb Wing of the Reserve Command. Steve Gorman reported from Los Angeles, and Phil Stewart reported from Washington. Additional reporting was provided by Costas Pitas, Jasper Ward and Bill Berkrot; editing by Bill Berkrot & Jamie Freed.
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Industry group warns that the UK's defence and auto supply chains are threatened by the escalating scrap aluminum exports
Manufacturing trade body Make UK warned that the soaring exports of scrap?aluminum could leave Britain without a critical material required for defence, digital technologies, clean energy and the automotive industry. The UK could face a serious crisis if scrap exports continue to increase, as industry moves abroad to find better scrap markets. This puts jobs, investments and supply chain resilience at risk. Make UK stated that domestic industry may need up to 6 million metric tonnes of "available scrap" for recycling in order to meet the 8 million tonne aluminium demand projected by 2035 under the government's "Critical Minerals Strategy" and Modern Industrial Strategy. Daniel Paterson said that the UK Aluminium (Scrap) Collection and Sorting?needs to grow by 25 percent each year. This important opportunity will be lost if UK continues to export critical materials that are essential for our future growth sectors, national security, and resilience. Data from the information provider Trade Data Monitor shows that UK exports of aluminum waste and scrap reached 624,314 tons in 2016, a 43% increase from 2016. In the same time period, UK scrap aluminium shipments to India increased by 94%. The UK's aluminium scrap exports in the United States reached 23,560 tonnes last year, a jump of 989% since 2024. Make UK stated in a press release that "UK exports increased dramatically to the U.S. after Section 232 Tariffs excluded aluminium scrap from their scope." In June of last year, U.S. president Donald Trump imposed tariffs of 50% on aluminum imports. Make UK called on the government to invest in sorting and preprocessing capabilities in the UK, for stronger standards of collection and enforcement and targeted measures that would keep certain alloys of aluminium in Britain. It also called on the government to "engage urgently" with the EU in order to "secure equal treatment" if Brussels introduced aluminium scrap export restrictions. After warning that scrap exports could leave EU metals industries without material for recycling and decarbonisation, the European Commission has begun to develop measures to reduce aluminium scrap leaving Europe.
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U.S. gasoline drops below $4 per gallon for the first time since April
U.S. retail gasoline prices fell below $4 per gallon for a first time since mid-April. This was due to optimism that a preliminary deal between the U.S., Iran, and other countries would lead to the reopening of Strait of Hormuz – a vital passageway for oil supplies around the world. Crude oil prices fell by more than $4 per barrel after U.S. president Donald Trump announced the U.S.-Iran had signed a Memorandum of Understanding to end the near four-month conflict. However, it is still unclear whether this agreement will last. The drop in fuel prices may provide some relief for the Trump administration. They had promised to reduce energy prices. Trump and Republican lawmakers who are fighting to maintain their narrow majority in both chambers of the U.S. Congress during the midterm elections in November have been criticized over the increasing cost of fuel. The $4 per gallon threshold has been viewed by many as a psychological barrier that causes consumers to change their behavior. For example, they may reduce fuel consumption. Trump said that the text of this deal would be made public after the formal signing ceremony, which took place on Friday. He also announced the full reopening of the Strait of Hormuz. Experts say that it could take several weeks before shipping can resume normality. This is because removing the mines from waterways is a complicated process. Patrick De Haan is the head of GasBuddy's petroleum analysis. He said that the real test will be in the Strait of Hormuz. Any reopening of the Strait and the resumption normal oil flow would signal the durability of this relief. For now, the average national price could continue to fall, as long as there is no drastic reversal, and both the U.S. & Iran continue in the right direction. GasBuddy reports that the average U.S. retail gasoline price fell to $3.997 per gallon Sunday. This is the lowest it has been since mid-April. Prices are still 90.8 cents higher than the same time last year. According to the American Automobile Association, the national average price was $4.065 for Monday. De Haan stated that as of Monday, Americans had collectively spent $46 billion on gasoline since the beginning of the war. Late March, gasoline prices rose above $4 after Iran closed the Strait of Hormuz to most shipping. The Strait of Hormuz is responsible for nearly a fifth of global oil flows. For the first time since three years, consumer inflation rose to 4% in May. According to the Labor Department, falling gasoline prices have led to a moderated expectation of inflation among consumers this month. It is not yet clear if the relief will last. Bjarne Shieldrop, SEB's chief commodities analyst said: "This is fragile." It can easily fall apart. Schieldrop stated that there may be certain details in the U.S.Iran Memorandum which are impossible to overcome. U.S. gasoline is in a supply crunch. The 'robust' fuel exports and the resilient domestic demand are threatening to squeeze already thin inventories and drive up gasoline prices. According to government data, in the first week of June, gasoline inventories fell to their lowest level for a decade. They were just 215.1 millions barrels. Tom Kloza is the chief energy advisor at Gulf Oil. He said that if no progress was made in clearing the strait and reinstating insurance for vessels, or in curbing the violence of Iranian proxy forces, then the reprieve could be short-lived. Reporting by Nicole Jao, New York; editing by Sanjeev Mikleni
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Newmont announces new CFO and COO as part leadership overhaul
Newmont announced Monday a series of 'executive appointments', including the appointment of Brian Tabolt to its finance chief. The gold miner is reshaping its top management, under a new CEO. Tabolt was Newmont's group head of finances and chief accounting officer before joining the company. He joined Molson Coors Beverage in 2021. Tabolt replaces Peter Wexler who served as the interim CFO of the company. His appointment takes effect on July 1. The company also announced the appointments of David Thornton, chief technical officer and Mark Rodgers, chief operating officer. Newmont is undergoing a boardroom shake-up after Natascha Vijoen was appointed CEO in September, and Karyn Ovelmen left her position as Finance Chief in July of last year. The new rules come as gold prices are above $4000 per ounce. Investors are pressing miners to increase profits despite rising costs and tougher government regulations. The company stated that it was well-positioned to improve performance, maintain cost discipline and execute effectively, as well as deliver long-term value for its shareholders. (Reporting and editing by Anil D’Silva in Bengaluru, Sumit Saha from Bengaluru)
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Vale, a Brazilian company, plans to invest $2.6 Billion in decarbonization initiatives
A sustainability report released on Monday revealed that Brazilian miner Vale will invest up to 13 billion reais (2,56 billion dollars) in decarbonization projects to achieve its voluntary emission reduction targets and mitigate climate-related risks. The company has not specified the timeline for the investment. The investment includes up to four billion reais in decarbonizing operations. The 8 billion reais are allocated to the construction of industrial complexes focusing on low-carbon technology, including steelmaking technologies and iron ore briquettes. The firm stated that the remaining 1 billion reais would be used for research and development. Vale has invested 9 billion reais between 2020 and 2025 in initiatives to reduce carbon emissions. Vale's executive vice president for sustainability, Grazielle Parentsi, told a reporter that the company could see financial and environmental benefits from these initiatives. She said that Vale's governance structure evaluates all projects and decisions with this level of importance based on an environmental, social and governance matrix which identifies the potential risks and opportunities associated with each one. Carbon?pricing mechanisms could cost the company up to 22 billion reais, at current?value. This is expected to have a significant impact from 2030. $1 = 5.0686 Reais (Reporting and Writing by Fernando Cardoso, Editing by Aurora Ellis).
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The US Strategic Petroleum Reserve has its lowest oil stock since 1983
According to Department of 'Energy data released on Monday, crude oil stocks in the U.S. Strategic Petroleum Reserve have fallen to 340.3m barrels. This is the lowest level since 1983. It signals a?shortage of supplies at a time when?the u.s. Iran and the United States agree to a deal that will end the war in the Middle East and open up the Strait of Hormuz. The government's emergency stock fell by 8.9m barrels. This is the third-largest draw in history. The U.S. agreed to "loan" 172 million barrels to the facility in order to lower fuel prices which have risen to multi-year levels over the past few months. U.S. crude stock levels have dropped sharply over the past few weeks due to high demand for American oil in refining, and to fill supply gaps created by the Iran War. Overall,?U.S. After the beginning of the war at the end February, inventories including commercial and SPR stock have dropped by 79 million barrels to 77,6 million, the lowest level since 2023. Cushing, Oklahoma's main oil storage hub and pricing point for U.S. West Texas Intermediate Crude Futures, has seen its inventories drop to 21.6m barrels. This is near the operational lows. There are concerns about a tight supply. Stocks in the SPR fell below levels reached during the tenure of former president Joe Biden. They hit a low of 346.8 millions barrels. Republican lawmakers raised concerns at the time that the sale of the?180m barrels of oil, the largest amount ever sold from the Strategic Petroleum Reserve after Russia invaded Ukraine, was being used as a 'political instrument' and had damaged the?delicate sal caverns. The Biden administration denies these claims. The latest SPR loan requires companies to borrow oil 'to return the original volumes, plus a premium, in the form of extra oil. The Department of Energy says the system will stabilize markets without costing U.S. tax payers.
The "boom" of Trump's factories is seen in two different ways by a town in Indiana
John Axelberg's best customer recently asked him to invest $800,000.00 to double the production of tubular frames his factory produces for large-scale solar farms.
He said no
Axelberg’s small metal-forming business's solar division fueled the company's 30% revenue increase last year, thanks to tax incentives from the Inflation Reduction Act, passed by President Joe Biden. However, the rest of the industries Axelberg serves, including heavy trucks and farm equipment, were collectively down 20%. He is also concerned about solar. Donald Trump has said that his policies will unleash a new American manufacturing boom. In industrial communities like South Bend, however, the reality is nuanced. Government policies boost some sectors, while obscuring the outlook for other industries. Many manufacturers are left navigating a patchwork of incentives, tariffs, and changing signals from Washington. Recent polls have revealed that Trump's economic stewardship has become a major political issue for both him and Republicans, with the midterm elections less than seven months away. Only 29% of respondents to a /Ipsos survey approve of Trump's economic leadership. This is the lowest approval rating for either of Trump’s administrations, and also lower than that of Biden, his Democratic predecessor. Axelberg's costs are higher for metals and imported parts because of tariffs. Meanwhile, the current administration has halted the construction of solar farms in federal land.
"I don't have any confidence that he will not pass another executive order to start coming after (solar credits) we've already received and claw them back," stated the CEO of General Stamping & Metalworks. A family-owned company with $130 million in sales, General Stamping & Metalworks has been bending steel since 1922.
Pierre Yared is the acting chair of President Trump’s Council of Economic Advisers. He pointed out that improved manufacturing productivity and increased investment in new equipment and plant are early signs of success for Trump’s policies.
Yared stated that it would take some time for the President's policy to fully manifest.
MANUFACTURING RENEWAL ELUSIVE
South Bend is a prime example of the stark contrast between a few niches that are booming and the lingering malaise within manufacturing. This once-thriving industrial center has struggled to recover its economic footing for the past six decades since the 1964 closure of Studebaker’s sprawling auto factory. There are many established manufacturers in South Bend who are struggling to stay afloat or facing erosion of key sectors. This includes businesses that boomed under the previous administration, such as "electric vehicles".
Michael Hicks is an economist who studies manufacturing at Ball State University. He said that "there's not evidence of a manufacturing revival." It appears that the manufacturing sector has declined over the past 10 to 11 month. Defense is a business that's doing well. AM General, which is based in this city, built a brand new factory to service a U.S. $8.7 billion defense contract for a new generation military vehicle.
Cleveland-Cliffs is a steel processing company that has benefited from tariffs which have increased domestic steel prices. In a press release released last February, CEO Lourenco Goncalves stated that taxes would bring "a new golden age and a manufacturing revolution that will make America stronger again." Amazon is building a $11 billion datacenter that will eventually include 30 buildings, just up the road from the?steel?plant. Although data centers are not manufacturing plants, they require a large amount of raw materials and machinery that is used to fuel other goods producers. Once they're built, data centers don't generate many permanent jobs. According to the Federal Reserve the Federal Reserve estimates that the spending on data centers was more than half a billion dollars in 2013. The Federal Reserve expects the expenditure to "increase drastically" until 2030.
A joint venture between GM and Samsung, worth $3.5 billion, is currently being built to produce electric car batteries.
According to Jeff Rea, CEO of South Bend Regional Chamber, the data center craze has caused a backlash that's made the land prices near the new developments "nutso".
The shortage of skilled labor and other big changes have led to higher taxes and utility costs for many longtime producers. Trump's anti EV campaign is a major obstacle for the GM plant. The automaker has said that construction has been slowed and it no longer has an opening date.
Stuart Fowle said, "current market conditions allow us to plan for future needs and observe EV demand." On its website, the White House maintains a list of U.S. manufacturing and innovation investments. This includes Apple's $600 billion investment into factories and workforce development, and Meta's plan of spending the same amount in 2028 for AI technology and infrastructure. Yet, South Bend's factory jobs have been declining since the end 2020, with over 1,000 employees losing their jobs, including 265 since President Trump's election. This pattern is repeated across the nation. According to the Bureau of Labor Statistics, manufacturing jobs in the United States have decreased by 100,000 since Trump was inaugurated.
What is 'WHIMS of a King'?
There are certainly big projects in the works across the industrial heartland. The boom started during the Biden administration. This included massive new investments like those made by GM and Samsung in electric car and batteries projects and semiconductor plants. According to the Bureau of Labor Statistics (BLS), total construction spending for manufacturing plants increased from $5.9billion in February 2021, to a high of $20.8billion in October 2024. However, it fell to $17billion by December 2025.
Jon Ferguson, the CFO at Master Roll Manufacturing (which operates an office that looks out over Amazon's massive datacenter outside South Bend) said, "I'm not sure if I would call it a resurgence." Ferguson, CFO of Master Roll Manufacturing, said that sales were steady and not booming, despite the fact that they make and refurbish steel processing equipment.
It's a problem to have so many developments nearby. He said that the surge in land values has increased property taxes and that?electricity costs and water prices have also increased. He said that while it's great to see land prices rise, it's not very meaningful if the owners aren't looking to sell.
He said that "a lot of companies are unhappy with the way (the data centre boom) is falling apart."
Some companies have struggled to find workers with the skills to install new production lines or repair existing ones at their facilities because so much of their labor has gone to construction.
Daniel Adams, CEO at Manufacturing Technology Inc. sees the same mixed bag of manufacturers. His great-grandfather founded the business in 1926 as a tool shop. The company has since carved out a niche in friction weld, a technique used to manufacture everything from golf putters and jet engines. Since Trump's election, he said, it has become apparent that EVs will be less important. This has affected his auto-related businesses. He said that auto companies and suppliers are putting off investments.
Adams stated that his aerospace customers are doing well, but this is not enough to propel the entire business forward.
Adams says that bringing new industry to the area will benefit his business over the long-term, but it can cause tensions with other local businesses in the short term. For example, there are issues with labor. He said that people go to the "shiny place" and make an extra two dollars per hour.
Axelberg, the CEO of General Stamping & Metalworks remains cautious. He had 25 acres next to his plant which he intended to use for finishing and assembly. He has put that on hold because he is no longer confident in the current economic climate.
He said, "It almost seems like there's no policy." "It is like the whims and caprices of a monarch."
(source: Reuters)