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Tiny Tuvalu wants assurances from the US that its citizens will not be barred
Tuvalu, the tiny Pacific nation scientists predict will be submerged in rising seas, has said that it wants written assurances from the United States to ensure that its citizens won't be barred entry. It was apparently included by mistake on a list of countries that face visa bans. Other media reported that Marco Rubio, the U.S. Secretary for State, had signed an internal diplomatic cable in which he indicated the United States was considering expanding its travel restrictions, including to three Pacific Island countries, to 36 countries. The cable stated that nations on the list had 60 days to correct their mistakes. The news caused concern in Tuvalu. Its population of 11,000 people is at risk of rising sea levels. A third of its residents applied for an Australian ballot to obtain a climate migration visa. Tapugao Falefou said that a U.S. government official had told him Tuvalu was included on the list due to "an administrative error and a systemic mistake on the U.S. Department of State's part". Tuvalu's Government said in a Tuesday statement that they had not been notified formally of their inclusion on the list. The United States Embassy in Fiji also assured them it was an "error within the system". The statement by Tuvalu's Ministry of Foreign Affairs, Labour and Trade stated that "the Embassy has verbally assured that there are currently no restrictions on Tuvaluan citizens entering the United States, and the matter is under review with the authorities in Washington." Tuvalu is seeking "a formal written confirmation of that effect" and has continued to engage with the U.S. government to ensure Tuvaluans do not suffer unfairly. The embassy didn't immediately respond to our request for a comment. The official who was not authorized to publicly speak about the visa policy in the United States said that "no decisions had been made and any speculation would be premature". The official said that "Tuvalu’s public statement mischaracterizes, and omits many of the valid concerns United States have with travelers from this country." Vanuatu, Tonga and Vanuatu are the other Pacific Islands mentioned in the cable. Tonga’s government received an official U.S. alert and was working to develop a response. Vanuatu government has not responded to a comment request. (Reporting and editing by Saad sayeed in Sydney, Kirsty needham from Sydney)
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Asian shares are rising, dollar weakens as US bill debate continues; gold is on the rise
The dollar remained near its multi-year lows as Asian shares rose and markets awaited the vote on President Donald Trump's tax and spending bill. On Monday, global shares rose to an intraday high on the back of trade optimism. However, a marathon Senate debate over a bill that would add up to $3.3 trillion in debt to the United States weighed down sentiment. The Nikkei index of Japanese shares fell as much as 1,1%, as the yen rose. Gold and oil both advanced for the second session in a row. The vote on Trump's tax-cutting and spending bill was expected to take place during Tuesday's Asian trading session, but the debate continued over a series of amendments from Republicans and minority Democrats. Trump wants to see the bill pass before the Independence Day holiday on July 4. Investors are also looking forward to Thursday's key U.S. employment data as global trade negotiators rush to reach agreements before Trump's deadlines. Ray Attrill is the head of FX Strategy at National Australia Bank. In a podcast, he said that the payroll data released later in the week would "have a significant impact, I believe, on the sentiment regarding the timing of Fed rate reductions." South Korea's Kospi index, which measures the performance of Asia-Pacific stocks outside Japan, rose 1.8%, leading MSCI's broadest Asia-Pacific share index. The dollar fell 0.3% to 143.62 Japanese yen. The dollar dropped 0.1% to $1.1794 versus the euro single currency. It had earlier fallen as low as $1.1798. U.S. crude fell 0.4% to $64.86 a barrel, weighed down by expectations that OPEC+ would increase its output in August. Gold spot rose 0.5%, to $3319.55 an ounce. The German DAX Futures rose 0.2%, while the Euro Stoxx 50 futures in Europe were up by 0.1%.
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Investors watch US trade talks as copper prices rise on a weaker dollar
The London Metal Exchange and Shanghai Futures Exchange saw copper prices rise on Tuesday, despite the weaker dollar. Meanwhile, uncertainty remained over U.S.-China trade. By 0103 GMT the LME's three-month contract for copper rose 0.15%, to $9,883.5 a metric ton, while the SHFE's most traded copper contract increased 0.1%, to 79840 yuan (11,145.23). The worries about the U.S. deficit have weakened the dollar (which) is supportive of commodities. My focus this week will be the U.S. Trade talks," said an analyst in Beijing from a futures firm. The dollar index fell by 0.35% on Monday to 96.86, putting it on course for a sixth consecutive month of losses and its worst half year since the 1970s. The greenback is less expensive to buyers of other currencies. Last week, U.S. Treasury Sec. Scott Bessent said that the U.S.-China had resolved the issues surrounding shipments of Chinese magnets and rare earth minerals to the U.S. This further modified a May agreement in Geneva. Bessent added that even if countries are negotiating with good faith on July 9, they could still be facing sharply higher tariffs. Any possible extensions would be at the discretion of Trump. LME nickel dropped 0.33% to $16,165 per ton. Zinc eased by 0.31% to $2.743 and lead fell by 0.12% to $2.042. SHFE Nickel fell by 0.65%, to 120,180 Yuan. Zinc fell 0.51%, to 22,320 Yuan. Tin dropped 0.27%, to 267410 Yuan. Lead fell by 0.15%, to 17,120 Yan. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0600 UK National House Price mm,yy June 0750 France S&P Global Manufacturing Final PMI. June 0800 EU Final HCOB Manufacturing Final PMI. June 0830 UK S&P Global Manufacturing Final PMI. June 0900 EU Flash HICP F, E A, T YY,MM. June 1345 US S&P Global Manufacturing Final PMI. June 1440 US ISM Manufacturing Final PMI.
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The price of oil drops on the back of OPEC+ and tariff fears
The oil prices fell on Tuesday due to expectations that OPEC+ will increase their output in August, and fears of a slowdown in the economy caused by higher U.S. Tariffs. Brent crude futures were down 16 cents or 0.24% to $66.58 per barrel at 0000 GMT. U.S. West Texas Intermediate crude fell 20 cents or 0.31% to $64.91 per barrel. Daniel Hynes, senior commodity strategist at ANZ, said in a recent note that "the market is concerned the OPEC+ will continue to increase its output at an accelerated pace." Four OPEC+ source told us last week that they plan to increase output by 411,000 barrels a day in August. This follows similar increases in May, July, and June. If approved, OPEC+ would increase its total oil supply for the year by 1.78 million bpd. This is equivalent to over 1.5% of the global demand. OPEC and allies, including Russia, collectively known as OPEC+ will meet on the 6th of July. Oil prices were also held back by uncertainty about U.S. Tariffs and their impact upon global growth. U.S. Treasury Sec. Scott Bessent warned countries that they could face a sharply increased tariff despite good faith negotiations, as the deadline of July 9 approaches. This is when tariff rates will revert to President Donald Trump’s temporarily suspended rates of 11 to 50 percent announced in April. Morgan Stanley believes Brent futures will retrace back to $60 around early next year. The market is well-supplied and the geopolitical risks have abated following the de-escalation between Israel and Iran. It anticipates a surplus of 1.3m bpd by 2026. Brent prices rose after a 12-day conflict that began on June 13, when Israel targeted Iran's nuclear installations. After the U.S. attacked Iran's nuclear sites, Brent prices soared over $80 per barrel. They then dropped to $67 a bar after Trump announced a ceasefire between Israel and Iran. (Reporting by Anjana Anil in Bengaluru; Editing by Himani Sarkar)
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G7 calls for talks to resume on Iran Nuclear Program
According to a statement released jointly, the foreign ministers of the Group of Seven nations stated that they support the ceasefire agreement between Israel and Iran. They also urged the resumption of negotiations for a nuclear deal with Iran. Iran and the U.S. began holding talks in April to find a diplomatic solution for Iran's nuclear programme. Tehran claims its nuclear program is peaceful, while Israel and its allies claim they want to prevent Iran from building a nuclear bomb. The G7 Foreign Ministers stated: "We call for a resumption in negotiations that will result in a comprehensive agreement, which is verifiable, and durable, that addresses Iran's nuclear program." Trump announced last week a ceasefire in the war between U.S. allies Israel and Iran, its regional rival. The conflict began on June 13, when Israel attacked Iran. The Israel-Iran war had caused alarm in a region that has been on edge ever since Israel's Gaza War in October 2023. Washington had struck Iran's nuclear facilities before the ceasefire announcement. In retaliation, Iran attacked a U.S. military base in Qatar. The G7 Foreign Ministers said that they had urged "all sides to avoid any actions which could destabilize further the region." Steve Witkoff, the U.S. Middle East envoy, said that talks between Washington and Tehran are "promising", and Washington is hopeful of a long-term deal. G7 diplomats condemned threats made against the U.N.'s nuclear watchdog chief on Monday after a hardline Iranian paper said IAEA head Rafael Grossi was to be tried and executed for being an Israeli agent. The U.N. Nuclear Watchdog's Board of Governors, which consists of 35 nations, declared Iran to be in violation of its nonproliferation obligations on June 12. This was the first time that Iran had been in violation of these obligations in nearly 20 years. Israel, the only Middle Eastern nation believed to possess nuclear weapons, has declared that its war against Iran is to prevent Tehran from developing nuclear weapons. Israel is not a signatory to the Nuclear Non-Proliferation Treaty. The U.N. nuclear monitor, who conducts inspections in Iran says that it has "no evidence" of a coordinated and active weapons program.
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Panama removes a portion of the copper stockpiled at First Quantum mine
Panamanian officials announced on Monday that more than a quarter (25%) of the copper concentrator stockpiled by First Quantum Minerals at its Cobre Panama mine, since the mine closed in 2023, has been shipped out. The removal of 33, 000 metric tons of copper out of a total 120,000 tons at the site seems to have ended the uncertainty about the stuck-on copper and may signal a possible thawing in the relationship between President Jose Raul Mulino’s government and the Canadian company. First Quantum has declined to comment. The mine was closed by the previous administration of Panama after public protests about environmental concerns. Panama's Trade and Industry Ministry said that the copper stockpile would be removed gradually, but did not provide a date or any further information about the shipment. "More 33,000 tons of concentrate have been shipped." The ministry stated that the removal of the concentrate will be gradual, depending on weather, technical and logistical factors, and other factors. The ministry said that it, as well as Panama's maritime authorities, customs, and environmental authorities were overseeing the process. First Quantum announced in March that it had agreed to end the arbitration process over the mine. This allowed for the government to resume talks with First Quantum. Reporting by Elida Moreno in Panama City, and Divya Raagapal in Toronto. Editing by Daina Beth Solow, Kylie Madry, and Sonali Paul.
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Businesses call on EU to not weaken sustainability standards
Over 100 investors and companies warned on Tuesday against rolling back European Sustainability Rules that they say support economic growth. The EU is negotiating cuts to these rules in order to reduce costs to local industries. In a joint statement, a group of 29 companies and 80 investors, including EDF and Nokia, and financial institutions, such as Allianz, said that the rules, rather than hindering economic growth, were "conducive" to growth and competitiveness, and also long-term value and returns for investors. The European Union is negotiating proposals to ease corporate sustainability reporting requirements for the majority of businesses. They are also easing a requirement that firms check their supply chain for abuse. This comes amid criticisms from governments and industries who claim that excessive bureaucracy hinders productivity. Germany, France, and certain businesses have called for a dramatic reduction in the reporting requirements. But environmentalists and a larger group of companies and investment firms say that the rules will help them to manage climate risk and to drive capital into the green transition. The rules promote transparency and responsible conduct and are conducive to better risk management, growth and reorienting investments to green technologies. This statement was signed by Ingka Group, IKEA’s parent company. Carine de Bouissezon, EDF's chief impact officer, said that "where there is room for intelligent simplification, we should tweak the regulation. But, we must stay the course, and be proud to do so, to assert our leadership." The group suggested that EU reporting rules be applied to firms with more than 500 workers and that they adopt "transition plan" to show how they are aligned with climate goals. The European Commission has You can find out more about this by clicking here. Exempting companies that have fewer than 1,000 workers - this will cut more than 80% from the approximately 50,000 employees currently covered. Currently, the law applies to companies with more than 25 employees. Some EU legislators want to further scale back the laws to cover only companies with a minimum of 3,000 employees. The final rule changes must be approved by both EU member states and legislators. (Reporting and editing by Virginia Furness, Paul Simao).
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Trump's tax bill gives a break to coal used in steel production
The latest version of Donald Trump's proposed tax bill includes a reduction in the price of coal used to produce steel. This subsidy could amount to hundreds of millions over a period of 10 years, for a fuel which is mainly exported to China. In April, Trump issued executive orders directing Chris Wright, former CEO of fracking and energy secretary, to determine if metallurgical coal, or met coal, is a critical mineral. Wright did so in May. The latest version of Trump’s One Big Beautiful Bill, released by the Senate over the weekend, allows met coal to claim a tax credit for advanced manufacturing production, which is available for critical minerals and would cover 2.5% of the cost of the fuel. Sonia Aggarwal of Energy Innovation, an non-profit organization, said that allowing met coal get credit was insane as it could hurt efforts to switch to fuels with less carbon intensity. Robbie Orvis is a director at Energy Innovation and estimates that the credit for met coal producers could be worth $300,000,000 over a ten-year period. He also said the subsidy might help China compete against U.S. made steel. If Trump decides to use emergency powers, he could increase production by giving met coal the "critical mineral" classification. This is usually reserved for minerals used in high-tech defence systems. Conor Bernstein is a spokesperson of the National Mining Association. He said that the bill promotes jobs in the United States, manufacturing, and the economy. "Providing incentives to encourage steel-making coal is a way to achieve each of these objectives." The Metallurgical Coal Producers Association of West Virginia has not responded to our requests for comment on how the tax credit will benefit producers. West Virginia, a top U.S. mining state, has experienced several layoffs of met coal workers in the last few months. Ben Beakes of the West Virginia Met coal Association blamed layoffs in local media on inflation. (Reporting and editing by Marguerita Choy)
Miners, financiers see scope in energy transition however struggle with choices: Russell
Mining financial investment conferences have a fantastic track record of pointing to the next development location for commodities, as they unite early phase investors and junior miners looking for to get jobs off the ground.
A decade ago lithium was the popular metal, 5 years earlier it was the turn of gold and more just recently copper has been the flavour of the month at these occasions throughout Asia.
However at the 121 Mining and Energy Financial investment conference this week in Singapore there was no clear option, and no real consensus on where the very best chances lie.
If there was a broad style, it was that the energy transition is real and happening, even if it will take place at varying speeds and in various types across Asia, the world's. most populated area and the engine space of worldwide economic. growth.
But how best to utilize the energy shift into. lucrative investments is developing into a vexing challenge for. both those with cash to splash and those looking for to develop. jobs focused on speeding up the modification to cleaner fuels and. power systems.
Among the unexpected metals on the radar screen at the. conference was lithium. It headed out of favour recently. after a surge in financial investment took the market into surplus,. leading to a collapse of rates, which have actually dropped some 88%. given that reaching a record high in December 2022.
The thinking is that while the lithium market is currently. oversupplied, and this might continue into 2025, there is a wave of. brand-new need coming.
Much of the bearishness surrounding lithium has been about. the slower-than-expected uptake of electric vehicles in the. industrialized world.
However while sales might have been frustrating, lithium demand. is set for strong boosts in the next few years as electric. heavy cars get in service, and as battery storage to firm. renewables such as wind and solar become more widespread.
It's this need for lithium that will end up defeating any. weakness in EV cars and truck sales, and it's set to accelerate strongly by. 2030, which is coincidently around the time a mining company may. be able to cause new production assuming they started. development quickly.
STEEL DEMAND EQUALS COAL
Another out of favour commodity is coal, however there was. interest expressed in metallurgical, or coking coal, the greater. quality fuel used generally to make steel.
In result this is an India play, with the expectation that. as it continues its enormous infrastructure construct out, the South. Asian country will likewise produce more steel, and therefore need to. import coking coal given the lack of domestic resources.
While coal is the bogeyman of climate modification, the view amongst. some investors is that offered the energy shift relies. heavily on steel, coking coal can be acceptable offered its function. in producing steel.
Steel can be de-carbonised by upgrading iron ore utilizing green. hydrogen and then utilizing electric arc heating systems, however the view is. that this will take several years to reach the scale required,. and in the meantime the coal-intensive, standard oxygen. heater approach will control in India, as it carries out in China.
Another part of the product complex attracting financier. interest is the midstream sector, where raw materials are. processed into intermediate products.
The desire of Western countries to diversify away from. China's supremacy of metal processing is unlocking. opportunities, such as the capital offered from the U.S. Inflation Reduction Act.
The trick is navigating the administrative procedures behind. the different international legislations, and even if the money can be. accessed, it still might not be enough to get rid of China's. economies of scale and first mover advantages.
For instance, establishing a lithium processing plant in. Australia, the world's most significant manufacturer of the battery metal, is. likely to come in at up to eight times the capital and operating. expense of a comparable operation in China.
Accessing capital remains a continuous struggle, with both. financiers and miners stating the pools of readily available capital are. shrinking, especially if Chinese cash is considered politically. inappropriate.
This suggests that smaller jobs are significantly turning to. intermediaries to get funding, such as international trading houses. such as Glencore and Trafigura.
Banks will lend to these reputable business, and. they in turn will lend to smaller-scale jobs.
But the problem with this procedure is that it increases the. cost of capital and slows down the pace at which brand-new tasks. can be brought on line.
The bottom line is that the energy shift is viewed as. using big chances to miners, traders and investors,. however it stays afflicted by uncertainty over which innovations. will become the leaders, and also the absence of collaborated. government policies such as rewards and carbon taxes.
The opinions expressed here are those of the author, a writer. .
(source: Reuters)