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Environmental concerns have led Jesuits to consider divesting from Rio Tinto in Britain
The Jesuits of Britain, an order of Catholic priests, may sell their stake in Rio Tinto after a failed engagement with the mining giant over environmental concerns in Madagascar and Guinea, said its head for ethical investments on Wednesday. Stephen Power SJ, the order's head of ethical investments, said at Rio Tinto’s annual general meeting: "We have been engaged with Rio for three or four years now, coming to AGMs." Power said that Rio Tinto's management of water contamination at its Madagascar operations was particularly troubling. Key water reports were either late or lacking in detail. Since?years, environmental groups have warned that the water flowing downstream of Rio Tinto's southern Madagascar mining operation contains high levels of lead and uranium. This could pose a danger to local residents who rely on nearby water sources for their drinking water. Lead exposure can affect children's mental development and their ability to learn, while uranium is a kidney-damaging substance. Dominic Barton, Rio Tinto's chairperson, said that the company has "focussed a lot of attention" on water quality. He noted that external assessments showed "regulated metals consistently under laboratory limits of detection." The Jesuits are concerned about the?Simandou Project in Guinea, and Scope 3 emissions of Rio Tinto - indirect greenhouse gas emissions from their?value chain. The possible divestment is a reflection of?growing pressure from faith-based investor groups demanding greater environmental accountability, and community protection. (Reporting and editing by Louise Heavens, Clara Denina & Melanie Burton)
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Axios: US and Iran close in on a one-page note to end the war
Axios, citing two U.S. government officials and other sources, reported that the 'White House' believes it is close to reaching an agreement with?Iran over a one-page memo of understanding. This would end the war, and provide a framework for further nuclear negotiations. According to a report, the U.S. is expecting Iranian responses to several key points within the next 48 hours. The report cautioned that there hasn't been any agreement yet, but stated this was the closest parties have been to an accord since the beginning of the war. Axios reported that the deal included, among other things, Iran agreeing to a moratorium in nuclear enrichment and the U.S. agreeing lift sanctions and release "billions" of frozen Iranian funds. Both sides would also be lifting transit restrictions through the 'Strait of Hormuz. Reports said that the?one-page memorandum with 14 points is being negotiated by U.S. ambassadors Steve Witkoff, Jared Kushner, and several Iranian officials both directly and via mediators. Axios said that in its current form the memorandum would announce the end of the war and begin a period of 30-day negotiations to reach a?detailed agreement to open up the strait and limit Iran's nucleonic programme, as well as lift U.S. sanction, Axios continued. The U.S. Navy blockade and Iran's restrictions to shipping through the Strait would be lifted gradually during this 30-day period. According to a U.S. official, in the event that the negotiations fail, U.S. Forces would have the option of restoring the blockade, or resuming military action. Iran had said on Wednesday that it would only accept a "fair"?peace agreement after U.S. president Donald Trump paused the three-day old naval mission to reopen?the Strait of Hormuz, which had shaken the?month-old ceasefire in?the War. Could not immediately verify the report. The U.S. State Department or White House didn't immediately respond to an inquiry for comment. U.S. index futures continued to gain following the Axios Report. Reporting by Gursimran in Bengaluru, editing by Andrew Heavens
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Axios report that US Iran is closing in on a deal has boosted stocks and bonds
After a report by Axios that the U.S. is close to completing a one-page "memo" with 'Iran, the U.S. dollar dropped and stocks and bonds rose. The broad STOXX 600 index in Europe jumped dramatically and ended the day up 2.2%. Energy- and economy-exposed stocks such as?banks, miners, and oil and gas companies fell. According to a report from the U.S., the U.S. is expecting Iranian responses to several key issues?within 48 hours. The report cautioned however that no agreement has yet been reached but stated this was the closest the parties have ever come to an accord since the beginning of the war. Could not verify immediately the report. Bonds rallied as well, driving yields on the benchmark U.S. 10-year Treasury notes down by 6 basis points to 4.5%. European bonds, which have been hit harder in recent weeks, are outperforming. German 10-year yields are down 7.5 bps to 2.99%, and rate-sensitive 2-year yields have fallen 10 bps to 2.658%. Markets have scaled back their bets about the number of rate increases they expect from the European Central Bank this year. British and Italian yields dropped more dramatically, respectively, by 10 bps and 12.5% bps. The dollar fell, too. Both the euro and the pound rose by 0.6% to $1.1762 and $1.3618.
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Nickel touches $20,000 as Trump signals a possible Iran peace agreement.
Nickel prices reached $20,000 for the first time since about two years as U.S. president?Donald Trump hinted at a possible peace agreement that would end the war with Iran. The benchmark three-month copper price on the London Metal Exchange increased 1.1% to $13,284.50 a metric ton at 0804 GMT. This is its highest level since March 27. The Shanghai Futures Exchange's most traded copper contract was up 1.6% to 102,660 Yuan ($15.029.98) a ton. The Chinese markets resumed trading Wednesday after the May Day holiday. LME nickel rose 1.4% to $19 915 per ton, after reaching $20,000, the last time it was at that level in May 2024. Oil prices plummeted, stocks soared, and the dollar fell after Trump said on Tuesday that he would temporarily pause a mission to help escort vessels through the Strait of Hormuz. He cited "great progress" toward a comprehensive deal with Iran. "What we are seeing is a hope that the conflict in the Middle East will continue de-escalate, and not disrupt global economics too much," said Kyle Rodda a senior analyst at Capital.com. "If you add that to the fact that there's still this growing optimism regarding the AI buildout, and other structural and fundamental drivers for demand for copper the risk is currently skewed upward." LME aluminium was down 0.7% at $3,565.50 per ton, on the hope of alleviating supply disruptions in the Gulf. The metal accounts for 9% of all global production. Analysts at ANZ predict that aluminium 'prices will remain skewed upwards, trading over $3,400 per tonne, as persistent losses in supply are expected to increase the?market gap to 2.7mt by 2026, and to more than 1.1mt by 2027. Prices may temporarily drop if the Strait of Hormuz is reopened, but a renewed restocking of manufacturers will limit any significant decline. Lead was up by?0.5% among other?LME Metals. Tin was up 6%, and zinc gained a?1.1%. The SHFE saw aluminium gain 1.2%. Nickel rose 3.5%. Lead gained 2%. Zinc gained 2.6%. Tin climbed 8.4%. Reporting by Pablo Sinha in Bengaluru and Swati verma; Editing by Subhranshu Sahu and Rashmi aich, Ronojoy Mazumdar
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Iron ore prices jump as China resumes trade after the holiday
Iron ore futures jumped Wednesday after China returned from the May Day holiday. Demand for this'steelmaking feedstock' is expected to pick up in the summer as construction activities rebound and blast furnaces restart production. The daytime trading price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 816 yuan (119.67 dollars) per metric ton. This is a 2.84 percent increase. As of 0708 GMT, the benchmark June iron ore price on the Singapore Exchange had increased by 1.93% to $110.60 per ton. Galaxy Futures, a Chinese broker, said in an online note that steel demand will?pick up? after China's five-day holiday. Blast furnaces are likely to resume operations following maintenance over the holidays. Galaxy Futures stated that the increased volatility of coking coal and coke prices is also a factor in supporting iron?ore price increases, which are largely driven by the higher energy demand during summer. However, high ore imports, as well as a weaker overall steel demand, have weighed down on prices. According to Mysteel, the data shows that iron ore imports into 47 Chinese ports from April 27 to may 3 increased by 2,15 million?tons per week. Liu Huifeng is the chief researcher for ferrous metals, futures, at Donghai Futures. He said that although there has been a marginal improvement in steel demand, it remains weak as the consumption of steel products fell from week to week. Although steel prices have'recovered,' surging energy prices and raw materials prices are putting pressure on already decreasing steel mill margins. Coke and coal, which are used in steelmaking, have both risen by a combined?2.18%. The benchmarks for steel on the Shanghai Futures Exchange increased. Rebar grew by 1.87%; hot-rolled coil grew by 2.34%; wire rod jumped 5.26%; and stainless steel grew 1.94%. ($1 = 6.8188 yuan) (Reporting by Ruth Chai; Editing by Subhranshu Sahu)
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Pandora: Low-income customers' lack of confidence hurts US sales
The new CEO Berta De Pablos Barbier is struggling to deal with the weak consumer sentiment that has been affecting the U.S., Europe and the Middle East due to the "Iran War". Pandora is under pressure due to high U.S. tariffs on imports and an increase in the price of silver. The Danish company sells silver charms bracelets starting at $70, made in its factories in Thailand. The company's poll of analysts predicted a first-quarter revenue of 7.089 billion crowns, which sent the shares of Pandora up by 9% at?early trade. Sales in Europe, Middle East, and Africa declined by 2% as well, but growth in Latin America, Asia-Pacific, and other core regions helped to offset this. Operating profit was 1.487 bn crowns. This exceeded analysts' expectations of 1,28 bn crowns thanks to lower marketing costs. De Pablos Barbier, formerly the head of marketing at Pandora, promised to bring in new designs, increase advertising efficiency, and win new customers. She said that 2026 would be a year of transition, while the strategy will deliver a higher comparable sales increase in 2027. Pandora's shares are down about 50% from a year earlier. In February, Pandora announced that it would convert at least half of silver jewellery to platinum-plated in order to reduce its exposure to volatile silver prices. Pandora announced that as its lab-grown business grows, it will begin labeling its diamond products. The company calculated their carbon footprint with external auditors. This will highlight their lower 'carbon emissions impact than diamonds produced through mining. Pandora's lab-grown diamonds are sourced from suppliers in India and the United States, who use renewable energy.
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Ahold Delhaize's resilient US performance tops profit expectations
Ahold Delhaize beat the market's expectations for its first-quarter core profit on Wednesday as its U.S. operations remained strong despite falling consumer confidence and a weaker dollar. The Dutch group that operates Stop & Shop, Giant Food Lion, Hannaford, and Albert Heijn in the U.S., and Delhaize in the Netherlands and Belgium reported a 0.7% increase in its underlying operating profit to 896 million euro ($1.05 billion), exceeding analysts' expectations of 858 millions euros. The core earnings increased 8.1% at constant exchange rates compared to the previous year. As a result of the currency exchange rate, the group's results are reduced when the U.S. dollars are converted to euros. U.S. consumer confidence also hit an all-time-low in April as the inflation brought on by the U.S./Israeli war against Iran continued to affect households. In a recent statement, Frans Muller, CEO of the company, said that disruptions from geopolitical tensions and volatility, such as the recent conflict in the Middle East are "a reality" our business has dealt with before. He added: "We are relying on our past experience and the measures we have taken in the last few years to limit the short-term effects." The Strait of Hormuz war has caused disruptions in shipping, which have pushed up the price of oil and ultimately gasoline and diesel. Other commodities such as?fertilizers and petrochemicals have also risen in price and will soon impact on consumers. Ahold Delhaize’s first quarter sales increased 2% at constant exchange rates but declined?4.3% when reported. The?group said that Kingfisher CEO Thierry Garcia would succeed Muller in April 2027.
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Australian stocks rise as miners and banks benefit from improved risk sentiment
Australian shares ended a two session slide on Wednesday. Banks and miners boosted risk appetite as signs of progress towards a U.S. Iran deal increased. The S&P/ASX 200 Index closed 1.3% higher, at 8,793.60. This is the highest close since early April. The benchmark index ended Tuesday 0.2% lower. U.S. president Donald Trump announced "great progress" towards a final agreement with Tehran, and signaled a brief pause on operations to escort ships through the Strait of Hormuz. Iran has been blocking this strait since late February. The financial stocks rose by 2.4% a day following the Reserve Bank of Australia's third rate hike this year, to 4.35%. The "Big Four" banks gained between 2,8% and 3,5%. Prashant Newnaha is TD Securities' senior rates strategist. He said that the RBA didn't signal any further tightening but the markets expect an increase to be made, most likely at the August meeting. This will bring inflation back to the target. The swaps indicate that there is a greater than 50% chance for a rate hike of 25 basis points at the meeting. The price of metals and iron ore rose on Wednesday as Chinese steel mills began production again after May Day holidays, with expectations that seasonal demand would pick up. BHP Group, Fortescue and Rio Tinto all gained between 2.3% to 3.2%. Energy stocks fell 2.1%, capping gains as oil prices dropped for the second day in a row on hopes of an Iran deal. DigiCo Infrastructure, the operator of a data centre in Chicago, saw its stock rise 25% among individual stocks after it announced a sale for $750 million. The benchmark S&P/NZX 50 index closed 0.8% higher in?New Zealand at?13.145.19. Anna Breman, Governor of the Reserve Bank of New Zealand, said that despite an escalating global risk outlook, New Zealand's financial system is resilient. (Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Harikrishnan Nair)
Gold increases by over 2% amid hopes for Middle East peace as oil and dollar fall
Gold prices rose?more?than 2% on Tuesday after the?U.S. President Donald Trump suggested that a possible deal could be made with Iran. This sent the dollar and crude prices lower, as inflation fears waned.
As of 0811 GMT, spot gold rose 2.7% to $4680.91 an ounce. This is the highest it has been since April 28. U.S. Gold Futures for June Delivery rose?2.7%, to $4693.20.
U.S. president Donald Trump announced on Tuesday that he will temporarily pause a mission to help escort vessels through the Strait of Hormuz. He cited progress towards a comprehensive deal with Iran.
Iran's foreign minister said that Iran would only accept a "fair and comprehensive agreement" with the U.S. in order to end the Middle East war.
As oil prices fell on the back of a reduction in geopolitical risks, gold gained. This was confirmed by Kelvin Wong, senior analyst at OANDA.
Wong said that if there are signs of a resurgence of tension, gold prices will be affected by profit-taking or short-term speculators unwinding their net long positions in gold.
Dollar-priced materials become cheaper for holders of currencies other than the U.S. dollar.
Increased?crude oil?prices can cause inflation and increase the probability of higher interest rates. Gold is considered to be an inflation hedge. However, high interest rates can make other assets that yield more attractive. This reduces its appeal.
Investors are awaiting the U.S. Non-Farm Payrolls, which are expected to be released later this week. This will determine whether the economy is resilient enough to allow the Federal Reserve to maintain its monetary policy.
"Factors like economic growth risks, worsening global relations, currency volatility - and downside risks in equity markets - will continue to support the role of gold as a portfolio diverifier," ANZ stated in a report.
Silver spot rose 4.6% per ounce to $76.16, platinum gained 2.9% at $2,009.25, and palladium increased 2.4% to $1,521.50. (Reporting and editing by Rashmi Dhaniwala, Mrigank Aich and Andrew Heavens in Bengaluru)
(source: Reuters)