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As markets await US inflation figures, gold reaches a three-month high.
Gold reached its highest level in more than three months on Monday. A muted dollar helped to boost appeal. Investors awaited U.S. data on inflation and comments from Federal Reserve chairman Kevin Warsh, this week, for clues on interest rate path. Gold futures in the U.S. rose?0.2%, to $4,691.10, while spot gold gained 0.7%, reaching its highest level since 15 May. Bullion prices rose by more than 5% in the last week, after the U.S. Treasury Department’s buyback plan pushed down the dollar and made greenback-priced gold more affordable to foreign investors. The?U.S. dollar will remain under?pressure and Treasury yields will either stabilize at current levels or continue to decline," said ActivTrades senior analyst Ricardo Evangelista. "The dollar will remain under 'pressure, and Treasury yields will stabilize at current levels or decline further," ActivTrades Senior Analyst Ricardo Evangelista stated. On Monday, the dollar fell to a multi-month low. Market participants will now be awaiting Wednesday's release of the Personal Consumption Spending Price Index and Warsh’s speech at the Jackson Hole Symposium, which is scheduled for Friday. This information will help them gauge policymakers' views on interest rates. According to the CME FedWatch Tool, traders are pricing in a 36% probability of a September rate hike, and a 64% likelihood of the Fed keeping rates the same. Gold is often seen as a hedge against inflation, but higher interest rates can reduce its appeal because it doesn't yield any income. The U.S. is preparing to impose economic sanctions against Iran's trading partners on Monday, which it has called the "greatest financial offensive" ever. Oil prices dropped by more than $1 per barrel as investors took profits before an announcement expected from Washington. Spot silver dropped 0.2%, to $68.81 an ounce. Platinum gained 0.1%, to $1877.84. Palladium fell 0.9%, to $1337.23.
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Sources say that Pakistan's Munir talked to Trump before the Tehran visit
According to three pakistani sources, U.S. president Donald Trump met with Pakistani army chief Asim Munir in the last week, a few days before Munir was scheduled to visit 'Tehran' on Monday. One of these sources said that the U.S. wanted to use Pakistan to influence Iran to return to negotiations. Trump warned last week that any country providing "any kind of lifeline" to Iran would face economic consequences as he sought to isolate the Islamic Republic. Iran, in turn, has promised to stop all oil exports out of the Gulf. According to two Pakistani source, Trump initiated the call last week, which was not previously reported. The White House Office of the Press Secretary didn't immediately respond to an inquiry for comment. Uncertain was what Munir discussed with Trump in detail. Pakistan's army confirmed that Munir and Mohsin Naqvi arrived in Tehran with Munir on Monday. They said it was "part of Pakistan’s efforts to promote peace and stability in the region." Pakistan has been a major trading partner for Iran during the recent conflict. One Pakistani source claimed that Munir would meet on Monday with close associates of Iran's Supreme leader Ayatollah Khamenei. A second source in the Pakistani government said that while U.S. - Iran tensions would be a major focus of Munir's visit, he was also expected to talk about recent attacks by Iran-aligned Houthi Fighters against Pakistan's ally Saudi Arabia, as well as -the recently signed mutual -defence agreement - between Pakistan, Turkey, and Saudi Arabia. In June, an interim peace agreement was signed between the U.S.A. and Iran as a result of Pakistan's mediation efforts. The Islamabad Memorandum was quickly shattered amid new fighting between Iran, the U.S. and other regional powers in recent weeks. A third?Pakistani said that there was a lack of trust between the U.S.A. and Iran. Munir, he added, wanted to alleviate the lack on mutual trust by Monday. Reporting by Asif Shahid, Ariba Shehid and Mubasher Bukhari; Editing and production by Rick Noack & Hugh Lawson
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Thames Water's creditors form new board as part of proposed rescue deal
Senior creditors of Thames Water announced Monday the first set of directors who will oversee a decade long overhaul of Britain's struggling water utility, if its plan for rescue is approved. The group includes a turnaround expert and a retired civil servant. The UK's biggest water company, which is saddled with a debt of around PS20 billion ($27billion), has been struggling to survive after its owners have failed to adequately invest in the aging?infrastructure. Public anger has also been directed at the company over sewage spills into rivers. In July, the senior creditor consortium known as London & Valley Water proposed a revised plan of rescue that included a 10-year programme of transformation and a potential 'golden stake' for?the Government in an attempt to prevent the company from being taken under?public ownership by Prime Minister Andy Burnham's administration. The plan is designed to address critical issues like pollution and leakage by investing in Thames Water’s infrastructure. The appointments are dependent on the turnaround plan being approved, the water regulator Ofwat clearing all directors, and the new capital structure through a court sanctioned restructuring. The 'creditors', who hold PS17 billion in debt for the utility, have proposed that Openreach chair Mike McTighe be appointed to the board of 'Thames Water.' Other candidates include former Yorkshire Water CEO Liz Barber and ex-CEO Clive Selley. McTighe, the man who will lead the new Thames Water board and oversee the overhaul of the governance, said, "It's going to take some time for us to fix Thames Water. But we are committed to restoring trust with our customers -and the public that Thames Water serves." The group of directors collectively has experience in turning businesses around and running regulated utilities. In an emailed message, a spokesperson from the utility stated that Thames?Water is working constructively in order to?reach a long-term agreement which will support its financial stability.
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UK informs energy chiefs of cyber attacks linked to Iran
Britain briefed the 'chiefs' of energy companies on Monday on how to protect their assets, after reports that Iran-linked hackers had allegedly'shut down a small energy facility. The Telegraph and Financial Times both reported that a cyber-attack, which they said occurred?in July? and was attributed to hackers with Iranian links, forced a small British generator off line for four days. Michael Shanks, Minister for Energy, did not say who or where the incident occurred, but he said that the government and industry took the incident very seriously. They were working with regulators and National Cyber Security Centre in order to assess threats and improve protections. Shanks, in a blog post on X, wrote: "To be clear: There was no threat to the wider grid and no one lost power." The generator is small, especially when compared to?what many of us would consider a "power station/plant". A spokesperson from Britain's energy department stated that there is no risk to the system as a whole, and added that the country has a "highly-resilient" energy network. The?Iranian Embassy in?London didn't immediately respond to an inquiry for comment.
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Sources say that QatarEnergy and Iraq's SOMO offer to load crude oil inside Hormuz through tenders.
Multiple trade sources reported on Monday that 'Iraqi state oil marketer SOMO and QatarEnergy are offering crude in rare tenders which require buyers to load their cargoes within the Strait of Hormuz. Sources said that SOMO offered September-loading Basrah Medium or Basrah Heavy Crude from Iraq's Basrah Oil Terminal or Single Point Mooring?and its related facilities. Iran's official news agency IRNA said that Baghdad had repeatedly requested permission to allow a number of Iraqi tankers to cross the Strait of Hormuz. The bids for Iraqi oil will close on the 26th of August. QatarEnergy, in addition to SOMO, has also offered al-Shaheen?, 'Qatar Marine'?and Qatar Land?crude for loading on September and October at their respective loading ports in Qatar. The tender is valid until August 25. Reporting by Nidhi Verma and Siyi Liu from New Delhi; Editing by Christopher Cushing and Christian Schmollinger.
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On?Monday, gold prices reached their highest level in over?three month as a subdued Dollar?lent support. Meanwhile, attention shifted to important U.S. Inflation data and Kevin Warsh's speech this week. As of 0644 GMT spot gold rose 0.9% to $4,643.63 an ounce. This is the highest price since mid-May. Prices rose by more than 5% in the last week. U.S. Gold Futures increased by 0.4% to $4,699.10. The dollar was a little off its multi-month lows as the market was unsettled after the U.S. Treasury announced that it would buy back additional long bonds. A weaker dollar means that holders of other currencies can afford to buy greenback-priced gold. Tim Waterer is the chief market analyst for KCM Trade. He said that gold has started the week in a positive mood and has returned to the bid mode. It's taking its cues from the weaker dollar, and it's also focusing on the higher yields, which may signal underlying economic strains or policy uncertainty. Watching the July Personal Consumption Spending price index and Fed Chair Warsh’s speech this week at the Jackson Hole Symposium will give us new clues about the U.S. rate outlook. The traders will pay close attention to any change in tone regarding the current policy and its relationship with recent developments on the bond market. Waterer stated that a 'balanced' or 'cautious? tone, which leaves room for flexibility, would allow gold to continue its gains. The U.S., on the geopolitical side, threatened Iran with "the greatest financial offense ever marshaled" as they prepared to roll-out economic sanctions targeting?Iran’s trade partners. Investors took profits before the announcement. Silver spot gained 0.1% to $69.03 an ounce. Platinum gained 0.5%, reaching $1,887.28, and palladium added 0.3%, at $1,353.34.
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Exxon and Lyondell are among the bidders for Shell's US chemicals assets. The deal could be worth $8 billion according to FT.
The Financial Times reported that Shell has attracted interest from bidders such as ExxonMobil, LyondellBasell and others for its U.S. chemical assets, which could fetch up to $8 billion. The report cited people who were familiar with the matter as saying that the private equity firm Apollo Global Management, and the chemicals division of the state-owned Kuwait Petroleum Corporation, had also expressed an interest in the?assets. Shell is looking to sell off underperforming chemical?plants. Shell, ExxonMobil and Kuwait Petroleum have not responded to requests for comment outside of regular business hours. Shell, ExxonMobil, LyondellBasell Apollo and Kuwait Petroleum did not immediately respond to? The FT reported that Shell's U.S. chemical business includes plants in Louisiana, Texas, and Pennsylvania, which produce chemicals for plastics, pharmaceuticals, and detergents. The newspaper reported that potential buyers had submitted non-binding bids last month. These included proposals for both the whole business and parts of it. According to FT, the reported price represents a significant discount from the amount of capital Shell invested in the facilities. Shell has agreed to sell its renewables business in Europe onshore to TotalEnergies earlier this month as the British energy giant 'continues' to reduce its low-carbon investment and focus more on its upstream operations and trade.
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British company offers to restart Australian manganese smelter
Natrium Redox Technologies is a British green technology startup that has made a 'firm proposal to the Tasmanian Government to purchase and restart Australia’s only manganese smelter to supply global battery and electric car markets. EY?Parthenon announced last month that the Liberty Bell Bay Smelter (LBB) would be closing after a failed sale. The former GFG Alliance owned by British industrialist Sanjeev Gupta entered voluntary administration and liquidation in March after suspending its operations at the end of last year. We have been working with EY Parthenon, the Tasmanian government and other stakeholders on this project for over six months. "We have also informed the federal government," said Natrium Redox Technologies in a press release. Our restart proposal asks for shared funding with the government of up to?A$15m ($10.75m) over a 16-week period, and the continuation of the current electricity contract. EY Parthenon, Tasmanian Business Minister Felix Ellis and others did not immediately comment. Natrium Redox Technologies stated that it initially planned to restart the smelter using conventional smelting techniques before building a new pilot plant which would use a new technology to create high-purity and low-emissions Manganese powder. This process removes oxygen from manganese ore by using liquid sodium instead of coking coal. The process operates at lower temperatures and produces no carbon emissions. The company stated that the new technology will add between 20% and 40% to the site's production. It will also elevate the smelter from a conventional alloys smelter to one of the most valuable manganese operations around the world, producing battery-grade material. "Battery-grade materials sell at a?far higher?price?than conventional alloys. This secures LBB's future financial stability and ensures it remains an important strategic minerals asset for Australia." Natrium Redox Technologies stated that its proposal would "provide more than 200 new jobs, previously associated with the smelter as well as secure other during construction." The company also proposed to reprocess A$210,000,000 worth of environmental?liabilities that have accumulated over decades?of slags and wastes, thus removing the environmental liability?from government. The company stressed that time is of the essence, as the longer furnaces sit idle, the more difficult and expensive it will be to restart them. ($1 = 1.3953 Australian dollars) (Reporting by Melanie Burton; Editing by Jamie Freed)
US building and construction spending falls in August on single-family homebuilding
U.S. building spending all of a sudden fell in August amid a sharp drop in expenses on singlefamily housing jobs, but declining borrowing expenses could stimulate activity in the months ahead.
The Commerce Department's Census Bureau said on Tuesday building costs dipped 0.1% after a downwardly revised 0.5% drop in July. Financial experts surveyed had anticipated building spending would edge up 0.1% after a previously reported 0.3% decline.
Construction spending increased 4.1% on a year-on-year basis in August.
Investing in personal building and construction jobs slipped 0.2% in August after decreasing 0.7% in July. Financial investment in domestic building fell 0.3% with outlays on new single-family jobs plunging 1.5%.
The rising supply of new homes on the market is preventing builders from beginning on brand-new housing tasks.
That, together with buyers holding out for lower mortgage rates could, in the near term, limit the boost from declining borrowing expenses. The Federal Reserve last month cut interest rates for the first time in 4 years. The U.S. reserve bank is anticipated to reduce rates once again in November and December.
Mortgage rates are at two-year lows, while the inventory of new homes is at levels last seen in early 2008.
Spending on multi-family housing systems fell 0.4%. However costs on home remodellings increased.
Financial investment in personal non-residential structures like workplaces and factories dipped 0.1%.
Investing in public construction projects advanced 0.3% after rising 0.5% in July. State and local government spending increased 0.3% and expenses on federal government jobs increased 0.5%.
(source: Reuters)