Latest News
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Ukrainian forces attack an oil depot in Russia’s Rostov Region
The Ukrainian military reported that Ukrainian forces attacked and destroyed an oil depot located in the southern Rostov region of Russia, which was used to supply Russian troops in parts of Ukraine occupied by Russia. The General Staff of Ukraine’s Armed Forces announced that the military’s special operations units in conjunction with rocket and artillery forces had struck the Atlas plant in Rostov Region, not far away from Ukraine’s eastern border. In a Telegram statement, the General Staff confirmed that "our forces have struck in the area where the target is located." "A fire was observed." "The results of the attack are being clarified." The facility is used to supply fuel and lubricants for Russian units in the Russian-occupied Luhansk region and Donetsk region on the eastern front of the war. Ukrainian forces have engaged in cross border attacks including energy targets. The General Staff stated that the aim was to curb Russia's ability to continue the war in Ukraine, which has been going on for more than three years. Ukrainian military bloggers reported earlier on the raid at the oil depot. They said that fuel tanks were engulfed by a fire. (Reporting and Editing by Rosalba o'Brien, Ron Popeski)
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Barrick Mining employees meet with Malian court appointed administrator in capital at the reopening of office
Two people familiar with the matter said that Malian tax officials reopened Barrick Mining’s office in the capital, under the supervision of a court appointed administrator. The office had been closed in April due to alleged nonpayment of taxes. This is the first major development since the Malian court, on 16 June, placed the Canadian miner’s Loulo-Gounkoto complex under state control. It was a major escalation in the long-running dispute over taxes. Barrick said that it would appeal the decision. It appointed former Malian Health Minister, Soumana Maadji as its provisional administrator. Makadji, who is expected soon to resume operations at the complex, held a staff meeting at the Bamako Office on Monday afternoon. According to one of the attendees, he said that he would be visiting the mine site on Wednesday. The mines will be able finance themselves once production resumes and gold sales resume. Three people with knowledge of the situation said that he also met with subcontractors Monday. Barrick's and Mali's Mines Ministry spokespeople did not immediately reply to requests for comments. Barrick and government have been negotiating since 2023 about the implementation of the new mining code, which raises taxes and grants the government a larger share in gold mines. The Loulo-Gounkoto mine complex has been closed since mid-January, after the Malian military government seized Barrick's stocks and blocked its gold exports. Barrick's Bamako main office has been closed for several months. (Reporting and editing by Joe Bavier, Tomaszjanowski and Tomasz Crowe)
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Chios, a Greek island, declares an emergency after wildfires continue to rage.
Greece declared a state-of-emergency on Chios Island on Monday. Hundreds of firefighters are battling the wildfires on the island for the second day, as the winds continue to rage, causing more power outages and evacuations of residents. The climate conditions on Chios are not conducive, and we have constant new fronts. He confirmed that an additional 170 firefighters would be added to 11 teams of approximately 190 firefighters who had been deployed on the island, located in the northeastern Aegean, to try to stop the fire from spreading into homes and areas where mastiha is produced, a natural resin made from mastic tree sap. Kefalogiannis stated that thirty more vehicles would be added to the 38 already deployed vehicles, with 13 helicopters, four water bomber aircraft and other support. The wind gusts made it difficult to put out the wildfires that have destroyed forest and pastures as they rage towards the north west and south of Chios Town, the capital of the island, forcing power cuts and forcing hundreds to flee. Kefalogiannis stated that the authorities would investigate the causes of fires which broke in different geographic parts of the island. Greece, located at the southernmost tip of Europe, has suffered from frequent wildfires that have affected its economy and environment in recent years. Scientists say this is due to a rapidly changing climate. The government has spent hundreds millions of Euros to compensate farmers and households for damages caused by extreme weather conditions and to upgrade firefighting equipment. In anticipation of a difficult fire season, the government has hired 18,000 firefighters, a record.
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GRAINS and soybeans slump due to 'greenhouse weather' in US
Chicago soybean futures eased Monday as favorable weather conditions in the U.S. took the attention away from the U.S. strike on Iran that occurred over the weekend. By 11:40 CST ( 1640 GMT), November soybeans had fallen 13-1/2 cents to $10.47 per bushel. Chicago corn fell due to weather pressure and wheat also declined with an accelerating harvest. Midwest Market Solutions president Brian Hoops said that the forecast for the week ending July 2 shows a warm and wet weather across the U.S. Corn Belt. Hoops said that the weather would create a "near greenhouse effect" with benefits for corn, soybeans and other crops. These favorable conditions have outweighed the impact of the initial surge in oil prices after the U.S. attacked Iranian nuclear sites on the weekend. After reaching a five month high, oil prices dropped 1% on Sunday as traders assessed the impact of the U.S. Airstrikes on the transit of gas and oil through the Strait of Hormuz. Because it is used as a biofuel to replace fossil fuel, the price of soyoil is closely linked to crude oil. Karl Setzer, a partner at Consus Ag Consulting said that "the lack a story about the weather on the U.S. crops is more negative than any potential explosion between the U.S. After hitting contract lows earlier, September corn fell 7-1/4 cents per bushel to $4.18-1/4. September wheat was 13-cents lower at $5.70-12 a bushel. Analysts predict that the weather in the United States will be favorable for harvesting wheat in the next few weeks. Hoops said that "Hotter, drier conditions are forecast for winter wheat Plains. This should advance the harvest of winter wheat, while good rains are forecast for spring wheat belt." Terry Reilly is a senior agricultural strategist with Marex. Renee Hickick in Chicago; Additional reporting by Ella Cao, Lewis Jackson and Sybille De La Hamaide in Beijing and Paris; Editing and production by Jan Harvey
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ERG will produce the critical mineral gallium next year in Kazakhstan
Eurasian Resources Group announced in a press release that it plans to invest $20 millions in Kazakhstan to produce the critical mineral gallium from the bauxite ores they process to make alumina. Gallium is listed as a critical mineral by the United States and European Union. It is required for the production of semiconductors and radar systems in aerospace and defense. Kazakhstan would become the second-largest gallium producer in the world, after China, if ERG's plan is implemented. ERG CEO Shukhrat Ibragimov stated that "ERG intends to become a major player on the global gallium market, beginning production in 2026, to supply OECD nations, with a goal to expand annual volumes to up to 15 metric tonnes per year." According to the U.S. Geological Survey, global gallium production reached 760 tons in 2013. The majority of the gallium was produced in China, with very small quantities coming from Japan and Korea. In response to Washington's crackdown on China’s chip industry, China banned the import of gallium (gallium), germanium (germanium) and antimony from the United States in December last year. The ban is only applicable to the United States. However, China has been steadily introducing export licensing regimes to these three metals in the 18 months prior to suspension. Aluminium is smelted using alumina. (Reporting and editing by Barbara Lewis; Pratima Deai)
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Brazil's Prio targets doubling of oil production in 2026 and cheers higher prices
Roberto Monteiro, the CEO of Brazilian oil company Prio, said that the company expects its daily production to double next year compared to 2024, due in part, he said, to some offshore fields being developed. Monteiro, Prio's CEO, said that the company expects to produce more than 200,000 barrels a day (bpd), up from 100,000 bpd last year. Prio, an independent oil producer, has grown in recent years by acquiring high-profile assets, such as the Wahoo and Peregrino fields from Equinor, Sinochem, and TotalEnergies. Monteiro explained that the production target reflects development of these assets. The company is currently waiting for approval from Brazil's environment agency Ibama before it can connect wells at Wahoo and start producing. This outlook is a result of increased geopolitical tensions, particularly in the Middle East. These tensions have driven global oil prices up in recent weeks as a result of concerns about potential supply disruptions. The global benchmark Brent price fluctuated on Monday. It reached a five-month peak before dropping more than 1%. Oil and gas were still being transported by tankers to the Middle East following the U.S. air strike against Iran at the weekend. Monteiro, in response to recent increases in oil prices, told reporters: "It is horrible to say a war was a good thing. But that's the reality." "Brazil is generally a stable geopolitical country, and it's a major oil producer." The CEO stressed that while Prio monitors geopolitical events around the world, its strategic decision-making will remain based on operational effectiveness and productivity. He said that the portfolio was created with efficiency in view. Prio shares traded in Sao Paulo rose around 1% Monday, beating the Bovespa index which fell 0.6%. (Reporting and writing by Marta Nogueira, Editing by Margueritachoy)
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Russia and Mali Sign Trade Deals, Eye Nuclear Energy Cooperation
On Monday, Russia signed agreements with Mali to strengthen trade and economic relations. President Vladimir Putin also told the leader of Mali's military junta who was visiting that specific areas could be improved. Russian state media reported that Putin met with Colonel Assimi Gouta at the Kremlin. The two men spoke for about two hours. Putin stated that the relations between Mali and Russia had "a good upward trend", even though bilateral trade is currently "modest", a Kremlin press release said. Putin stated that there are many areas of future cooperation, including geological exploration, the development of natural resources, energy, logistics, and humanitarian aid. The Kremlin reported that one of the agreements Putin and Goita made was about nuclear energy. Mali and Russia discussed in the past what they called a "strategic project" to build a low-power nuclear plant designed by Russia. The construction of a new gold refinery in Mali, backed by Russia, began in the first week of this month. Goita, who came to power in 2020 after coups in 2021 and 2020, said that it would give Mali greater control over its resources. Mali, one of Africa's leading gold producers lacks a globally certified and functional refinery. Russian mercenary units have also provided Goita with fighters, after the Malian military expelled French and U.N. forces that had been fighting Islamist insurgents in Mali for the past decade. The African Corps is still operating in Mali despite the announcement by Russia's Wagner mercenary unit earlier this month that it would be withdrawing.
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Oil prices drop as shares rise, markets ignore Iran conflict
The global equity markets rose on Monday, despite a drop in oil prices. However, they still traded at multi-month highs. This was because markets ignored the impact of U.S. strikes on Iranian nuclear sites to support an Israeli military offensive. All of Wall Street's major indexes traded higher. Nine out of eleven of the benchmark S&P 500 sectors also advanced. The session's biggest losers were energy equities. The Dow Jones Industrial Average rose by 0.17%, to 42279.55. The S&P 500 gained 0.48% at 5,996.40. And the Nasdaq Composite grew 0.61% at 19,565.74. European shares fell by 0.2%. Overnight, MSCI's broadest Asia-Pacific index outside Japan dropped 0.66%. MSCI's global stock index rose by 0.28%. Israel bombed Evin Prison in northern Tehran, a powerful symbol of Iran's ruling system, as well as the Revolutionary Guard command centres responsible for internal security within the Tehran region on Monday. Iran reiterated earlier threats of retaliation against the United States. The Strait of Hormuz was closed by its parliament, which is a key shipping lane for the global oil industry. "The market's higher price signals a risky sentiment, which is surprising given the volatile events that occurred over the weekend, including the U.S. bombing of Iran with Israel," explained Andrew Wells at SanJac Alpha, Houston. The lesson that we learn is that headline events have less impact on the market now since tariffs were implemented - so-called Liberation Day, which was the biggest volatile event. Brent crude futures dropped 0.83% to $75.37 a barrel. U.S. West Texas Intermediate Crude fell by 0.88% to $75.14. Brent crude and WTI crude benchmarks reached five-month highs at $81.40 and $79.40 respectively. At its narrowest, the Strait of Hormuz measures only 33 km (21 mi) in width. Around a quarter of all global oil trade as well as 20% of liquefied gas supply passes through this narrow stretch. Michelle Bowman, Vice Chair of the Federal Reserve's Supervision Department, said that she felt it was time to lower interest rates as she was more concerned about risks in the labor market and less worried about high import taxes causing an inflation problem. The dollar gained 0.41% against the Japanese yen, and fell 0.39% against the Swiss Franc. The euro rose 0.09% to $1.1532, recovering from previous losses after Bowman's remarks. The dollar index fell by 0.19%. It measures the greenback in relation to a basket of currencies, including the yen, the euro and the yen. Gold prices fell. Gold prices fell. U.S. Gold Futures increased 0.5% to $3.385.10 per ounce.
Trump's tariff war is a recession alarm
The turbulence caused by U.S. president Donald Trump's tariffs has not abated, and the markets are once again in turmoil. Foreign leaders are trying to figure out how to react to this dismantling.
The financial markets received a temporary reprieve on Wednesday, when Trump announced that he would pause tariffs for dozens countries for 90-days. Trump's escalating war of words with China, the world's second largest economy, has fueled fears about a recession and more retaliation.
Scott Bessent, U.S. Treasury secretary, tried to reassure skeptics at a cabinet meeting held on Thursday by saying that over 75 countries were interested in starting trade negotiations. Trump also expressed his hope for a deal to be reached with China.
The uncertainty between now and then has led to some of the most volatile markets since the COVID-19 pandemic.
The S&P 500 index closed Thursday 3.5% lower and is now about 15% below its peak in February.
Asian indices fell on Friday, following Wall Street's decline. Japan's Nikkei was down almost 5% while Hong Kong stocks are heading for their biggest weekly drop since 2008.
LSEG data revealed that the yield on the 10-year bond was set to reach its highest weekly increase since 2001.
Bessent, on Thursday, dismissed the new market turmoil by saying that striking deals with other nations would bring certainty.
White House: The U.S. has agreed to start formal trade negotiations with Vietnam. Exclusively reported on Friday, the Southeast Asian manufacturing hub was ready to crackdown on Chinese goods that were being shipped via its territory to the United States in order to avoid tariffs.
Shigeru Shiba, the Japanese prime minister, has meanwhile set up a task force for trade that is expected to visit Washington, D.C. next week. Taiwan also said that it expects to be part of the first group of trading partners who will hold talks with Washington.
CHINA DEAL?
Trump imposed higher duties on Chinese imports to punish Beijing for its initial retaliatory move.
A White House official confirmed that Trump has now increased tariffs by 145% on Chinese products since taking office.
Chinese officials are contacting other trading partners to discuss how to handle the U.S. Tariffs. They have recently spoken to counterparts from Spain, Saudi Arabia, and South Africa.
Trump told reporters in the White House that he believed the United States and China could reach a deal, but he repeated his claim that Beijing has "really taken the U.S. advantage" for a very long time.
"I am sure that we will be able get along very nicely," Trump said. He added that he respected Chinese president Xi Jinping. "He's been my friend for a very long time and I believe that we will end up working something out that is good for both countries."
China has restricted the import of Hollywood movies, a major American export, after rejecting what it called Washington's threats and blackmail.
The U.S. tariff freeze does not extend to Canada or Mexico. Their goods still face 25% fentanyl tariffs, unless they meet the rules of origin set forth in the U.S. Mexico Canada trade agreement.
Goldman Sachs has estimated that 45% of the time a recession will occur due to the continued hostilities between the three largest U.S. trading partners.
According to researchers at Yale University, even with the rollback the average U.S. import duty rate is still the highest it has been in over a century.
The pause did not ease the concerns of business leaders about Trump's chaotic trade war, which has resulted in a rise in costs, a fall in orders and a snarled up supply chain.
The European Union did, however, announce that it would suspend its first counter-tariffs.
Next Tuesday, the EU was due to introduce counter-tariffs against imports from the United States worth about 21 billion Euros ($23 billion), in response to Trump’s 25% tariffs. The EU is still deciding how to react to the U.S. auto tariffs as well as the 10% levy that remains in place.
The finance ministers of the 27-country group will discuss on Friday ways to take advantage of the pause in order to reach a deal with Washington, and to coordinate their efforts if that doesn't happen.
The European authorities estimate that the U.S. Tariffs would have a total impact on the economy of 0.5% to 1.00 % of GDP. According to the European Central Bank (ECB), the EU's economy is expected to grow by 0.9% in 2018. The U.S. Tariffs could push the EU into a recession.
(source: Reuters)