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The RV industry in America is feeling the effects of high gas prices and war.
Coley Brady, in late March, cut production on the majority of assembly lines in his sprawling complex in Elkhart (Indiana) from five to four days per week, when it became clear that spring sales had slowed. At the time of the U.S./Israeli war against Iran, the global energy market disruptions had already caused American gasoline and diesel fuel prices to rise by 33% and 43% respectively. "Clearly, the war and increased gas prices are the easiest things to blame," said Brady. He is co-founder at Alliance RV which manufactures high-end motorhomes and fifth-wheels. The RV industry, which is located in northern Indiana and produces over 80% of all RVs sold in the U.S., can be a good indicator of how the economy will develop. According to Commerce Department figures, consumer spending on recreational vehicles and goods fell for the fifth consecutive month in April. This is the biggest drop in real spending in this category since 2008, when the Great Recession was at its height. RVs are discretionary, expensive purchases that can be put off as uncertainty increases over the economy. According to University of Michigan Surveys of consumers, U.S. Consumer sentiment hit a new low in May, before improving slightly in early juin. Inflation, which is at its highest level in three years, continues to squeeze household budgets. Interest rates are still high, which doesn't help. According to LendingTree, most consumers finance RV purchases. The average interest rate for these loans is 7.53 percent. Jeff?Hirsch is CEO of Campers Inn. The company operates 50 RV dealerships across 22 states. He said that while more affluent boomers continue to buy, many more budget-conscious consumers do not feel it's the right time for an investment. RV sales usually increase in the spring as people plan their summer vacations. Statistical Surveys Inc. reports that registrations of RVs for consumers have been declining since last summer. This includes a 22% drop in March, and a 17% decline in April compared to the previous year. RV manufacturers shipped 13.5% less units to dealers during the first four month of this year than they did last year. This is according to the RV Industry Association. RVIA cut its "projection" for full-year shipments on June 1, to a range between?300,000.00 and 328.100 units. This is a far cry from last year's 342200 units. In a press release, Craig Kirby, RVIA president, stated that "economic headwinds and tightening budgets of households are contributing to a cautious outlook for RV shipment in 2026". Take it in stride In recent years, the RV industry has been struggling. Early in the COVID-19 epidemic, business boomed as people looked for ways to travel without having to fly or stay in hotels. In 2021, shipments reached a new record of 600,000. Sales collapsed after the crisis and the industry had to deal with an overhang of inventory. Gregg Fore is a former RV component manufacturer who now consults in the industry. He said that the war in Iran, and the high price of gas, "killed any speed?there was?" in the market heading into spring. Many manufacturers now have limited production schedules. Some manufacturers are consolidating their plants. Brady, from Alliance RV, is confident that business will improve in the second half of the year and possibly this summer, if the conflict in Iran is resolved. Analysts, however, believe that gasoline prices will remain high even if tensions ease. He said that the stock market is strong and that it will ultimately benefit business. Some trends could boost RV sales. The rising cost of airfares reminds us that road trips are still a cheaper and more attractive alternative, even if the cost to travel to Europe or other destinations starts to decrease. Brady says that "Mexico had problems with cartels, violence and other issues" while cruise lines were hurt by illness reports. He said: "You would think that all of this would lead back to RV usage." Brady stated that it "depends on market." Brady estimates that the reduction in production on certain lines has reduced his output by 10 percent since March. He said that although the production was scheduled to continue through July, if things go well in the summer, he could increase it. Michael Hicks is an economist who studies the RV industry at Ball State University. He said that there are many factors in favor of the industry. He pointed out that many RV buyers are in their 50s and 60s with retirement savings. He said that they had already experienced high gas prices and higher interest rates when buying homes. "Those are?the ones that the industry really relies on." Michael Provost, a Rhode Island retiree, is one of those people. The Rhode Island retiree, 69, has owned three RVs in the past 20 years and does not see any reason to reduce his usual pattern of traveling with his wife Cheryl to Cape Cod during the summer months and Florida during the winter. He dismisses the rise in gas prices. He said that this year we had been to Florida, and upon returning, the price of gas was $1 more per gallon. "You just take it in stride."
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Gold nears a one-week high following US-Iran Peace Deal
On Monday, gold prices reached a near-week-high as a tentative peace deal between the?U.S. Oil prices fell as a result of the Iran deal, which also eased concerns about a rate hike by the U.S. Federal Reserve. As of 0857 GMT spot gold was up 2.7% at $4,334.48 an ounce. This is its highest price since June 9. U.S. Gold Futures for August Delivery climbed 2.8%, to $4355.30. U.S. officials and Iranian officials announced that they had reached an agreement to end the war and reopen Strait of Hormuz. This preliminary pact sent oil prices down but left the fate of Tehran’s nuclear program up to future negotiations. Shehbaz sharif, the Pakistani prime minister, said on X that the pact would be officially'signed' on Friday in Switzerland. Giovanni Staunovo, a UBS analyst, said that "market participants are pricing in rate?hikes because of lower oil prices which is lifting yellow metal." "Near term, I'd expect some consolidation until we receive clarity from the Fed this week." The U.S. Dollar fell to its lowest level in 10 days, making bullion priced in greenbacks more affordable to other currency holders. Oil prices also dropped to their lowest point for over three months. Since the beginning of the U.S. and Israeli war against Iran, in late February of this year, gold prices have been under stress as the rising inflation risks fueled by oil has heightened expectations for higher interest rates. Gold is often seen as an inflation hedge, but it can lose its appeal when interest rates are high. The markets have lowered their?expectations of a 'U.S. According to CME FedWatch, the interest rate increase in December will be 53%, down from 69% the week before. Investors will be watching the Federal Reserve policy meeting, which is being led by Kevin Warsh for the first time. Rates are expected to stay unchanged. Singapore, meanwhile, will introduce an over-the counter gold clearing system, and a central bank gold vaulting service, according to the deputy prime minister. The city-state is looking to establish itself as a hub for gold trading. Silver rose by 3.7% per ounce to $70.51, platinum gained 3.4% at $1,776.83, and palladium increased 4.4% at $1,339.76. (Reporting from Pablo Sinha, Bengaluru. Editing by Louise Heavens.)
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Gold gains continue after US and Iran peace agreement
Gold rose by more than 2% on Monday, after U.S. officials and Iranian officials announced that they had reached a preliminary agreement to end the war. This lowered oil prices and eased concerns about inflation and rising interest rates. Gold spot rose 2.3%, to $4,316.03 an ounce, by 0730 GMT. This was its highest level since the 9th of June and extended gains for a 3rd straight session. U.S. Gold Futures for August Delivery rose?2.3% at $4,337.20. U.S. officials and Iranian officials announced on Sunday that they had reached an agreement on a framework for ending their war, stopping the U.S.'s blockade of Iran, and reopening the Strait of Hormuz. Shehbaz sharif, the Pakistani prime minister, said on X that the pact would be signed in Switzerland on?Friday. The U.S. Dollar fell to its lowest level in 10 days, making bullion priced in greenbacks?cheaper' for holders of other currencies, while oil prices dropped more than 4%. Tim Waterer is the chief market analyst for KCM Trade. He said that lower oil prices and a softer currency, resulting from reduced geopolitical risks, as well as the reopening of Strait of Hormuz are helping to reduce inflation expectations. The combination of the two has provided the precious metals with the best tailwinds in recent weeks. However, the sustainability will depend on the durability of the peace agreement. Since the start of the U.S./Israeli war on Iran, in late February, gold prices have dropped by about 20%. Global oil prices have risen sharply since the Strait of Hormuz was effectively closed. This has sparked inflation fears and raised expectations that interest rates will remain high for longer. Bullion is a non-yielding investment and therefore loses its appeal in a high interest rate environment. According to CME FedWatch, the market has reduced expectations of a U.S. interest rate increase in December from 69% to 51% following?the peace agreement. Investors are now awaiting the Federal Reserve's policy announcement and remarks on Wednesday. Rates are expected to remain the same. "Currency debasement fears, fiscal risks and the ongoing geopolitical fracture continue to support?long-term (demand for gold). OCBC stated in a report that a moderated energy-driven inflation could help these themes gain traction. Spot silver increased 3.3%, to $70.22 an ounce. Platinum gained 2.7%, to $1763.38. Palladium rose 2.7%, to $1317.22.
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WSJ reports that Australia's richest Rinehart has invested $1 billion in the SpaceX IPO.
The Wall Street Journal, citing an individual familiar with the situation, reported that Australia's richest person, mining baron Gina Rinehart has invested a total of more than $1 billion into the $75 billion SpaceX record-breaking IPO. Hancock Prospecting, Rinehart's company, did not confirm the size of their'stake' in Elon Musk SpaceX. She said, however, in a press release: "This investment is significant for Hancock and we are happy to have received a allocation in an IPO that has been extremely popular and well oversubscribed." She praised Musk because he built two of the top 10 companies in the world. "We view?SpaceX a rare business. It is led by an exceptional person and operates in sectors that are critical, with long-term prospects," said Rinehart. Her wealth was built from iron ore mined by her company, Hancock Prospecting. Hancock, an important investor in critical mineral projects, wants to supply SpaceX with its mineral needs. Hancock CEO Garry Korte stated that "we also see the potential of mutually-beneficial arrangements in the future between?SpaceX's critical investments and Hancock Prospecting’s significant critical minerals investments as demand increases for materials and infrastructure required to support advanced technologies." Hancock has a large stake in many rare earths firms, including MP Materials and Rare Earths Americas in the U.S., Australia's Lynas Rare Earths and lithium producer Liontown Resources, among others. Last month, it was revealed that the $3.3 billion U.S. Portfolio held by this company increased its gold, rare earths, and defence holdings. Rinehart’s investment in SpaceX proved to be a 'winner instantly. The shares soared 19% on their debut, sending the company's worth?past 2 trillion dollars, making it the 6th-largest U.S. firm. Investors were eager to own a piece in Musk's sprawling empire, which includes rockets, satellites, and AI. Rinehart praised Musk's entrepreneurial prowess while also calling him a patriot because he cut federal jobs in the United States through Donald Trump's Department of Government Efficiency. Rinehart stated that "SpaceX was a clear example?of?why we need more entrepreneurs, more builders and less bureaucracy in the world." Rinehart has also become more political. He encourages some of Australia's richest voters to switch their support from the opposition Liberal-National conservatives party to populist anti-migration One Nation.
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India's wholesale prices in May rose to 9.68% due to Middle East fuel price surge
Government data released 'Monday' showed that India’s wholesale price inflation increased to 9.68% compared to the previous year in May. The energy shock resulting from the Middle East conflict continued. The wholesale inflation rate, which is largely influenced by fuel prices, is significantly higher than India's May retail inflation of 3.93%. According to economists, however, the sudden rise in wholesale prices will not have an immediate impact on interest rates. Indian central bank kept rates the same at its June meeting, despite targeting 4% retail price inflation with a tolerance range of 2%-6%. It said it would wait to see if higher fuel prices have a second-round effect before tightening monetary policies. In a recent survey, economists predicted that wholesale inflation would rise to 9.05%. In April, the print was 8.26%. The first print of the revised series, with 2022-23 as the base year, shows that inflation has risen at its fastest rate in six months, compared to the comparable figures calculated by the government using the new series. Data showed that wholesale fuel and electricity prices rose by 30.33% on an annual basis in May, compared to a 24.89% increase in April. Prices of petroleum and natural gas rose by 61.51% in the month of May. Since the U.S. and Israel war against Iran began in late February, crude prices have risen by 27%. State-run oil marketing firms increased retail fuel prices in May four times. The U.S.-Iran agreement on a framework for ending their war, stopping the U.S. Blockade of Iran, and reopening the Strait of Hormuz - a preliminary agreement that sent global oil price falling - could provide some relief. The recent 'cooling' of global energy and commodity prices following the easing in tensions in West Asia will provide relief to the WPI inflation figure for June 2026, said Rahul Agrawal principal economist at ICRA. In May, wholesale food prices rose 3.60% compared to April's increase of 2.43%. Meanwhile, prices for manufactured goods increased 7.48% compared to April's rise of 6.68%. NEW INDEXES RELEASED The May release introduces new producer price indicators. These include an output PPI as well as a trial input PPI. There are also seven services PPIs covering banking, securities transactions and pension fund management. According to the calculation, producer prices rose by 9.38% in May. Reporting by Shubham Bátra and Shivangi Aarya from New Delhi, Editing by Janane Venkatraman
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Reports from Kommersant state that Russia has authorized refineries to reduce the environmental standards for gasoline to prevent fuel shortages.
Kommersant reported that the Russian government had authorized a few oil refineries to produce fuels at lower environmental standards for the domestic market. This is because the country has been experiencing fuel supply disruptions. According to data collected by, media reports and social media posts have indicated that there are supply disruptions in Russia in a dozen different regions. Only two regions of Siberia, besides the Russian-held Crimea have formally?confirmed these disruptions. Last week, Deputy Prime Minister Alexander Novak requested fuel market forecasts in order to avoid problems with fuel distribution and meet domestic demand. Ukraine has been targeting Russian refineries, fuel depots, and pipelines for several months in an attempt to curb Moscow's ability?to finance the war against its neighbor, which is now in its fifth-year. Kommersant reported Monday, citing an anonymous source, that in the fall, the government relaxed the rules allowing certain refineries to sell gasoline and Diesel fuel on the national market, even if it did not meet approved standards for sulphur and other indicators. Kommersant's?source? said that the measure was initially in place until May 1,?this year, but later extended. Separately on Monday, authorities in 'the Udmurtia Region east of Moscow announced that they had imposed a temporary 'limit on supplies of AI-92 or AI-95 gasoline to?petrol station operated by oil company Tatneft starting on June 12th. The regional authorities stated that "the restrictions are for passenger cars, and they are due to technical and logistical issues," adding that it is expected the problem to be resolved next week. (Reporting and Writing by Lucy Papachristou, Editing by Kirsten Doovan)
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Reports from Kommersant state that Russia has authorized refineries to reduce the environmental standards for gasoline to prevent fuel shortages.
Kommersant reported that the Russian government had authorized a few oil refineries to produce gasoline and diesel fuel with lower environmental specifications for the domestic market. According to data compiled by, fuel shortages have been reported in Russia by media and social media users?in about a dozen different regions. Only two regions in Siberia, besides the Russian-held Crimea have confirmed shortages. Last week, Deputy Prime Minister Alexander Novak called for fuel market forecasts to protect against difficulties in fuel distribution. Ukraine has been targeting Russian refineries, fuel depots, and pipelines for several months in order to limit Moscow's financial support of the war against its neighbor, which is now in its fifth-year. Kommersant reported citing "a source" that in the fall, the government loosened rules for certain refineries, allowing them the freedom to sell gasoline and Diesel fuel on the domestic market, which deviates from the approved regulations regarding sulphur and other indicators. Kommersant's sources said that the measure was in place until May 1 of this year but later extended.
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NY Post: Trump threatens to impose a 100% tariff on French wines over tech tax at G7 meeting
Donald Trump warned on Monday that the United States would be forced to impose 100% tariffs on French wine if Paris does not eliminate its digital tax on?American tech giants. The?U.S. will be forced to impose 100% tariffs on French wine, unless Paris removes its digital tax against?American tech companies. Trump claimed he had delivered a warning to Emmanuel Macron, the French President. Macron was told that he must remove the 3% tax from U.S. technology giants otherwise he will face tariffs on the American market. Trump said in an interview with the New York Post that he had asked Macron not to charge American firms, and that if they did, he would have to impose a 100% tax on all champagnes, all wines, and all other products originating from France. "All Macron has to do is eliminate the sales tax and he won't be under that pressure." White House and Elysee officials didn't immediately respond to our request for comment. Trump has previously threatened to impose a tariff of 200% on wine and other alcoholic drinks imported from France or the EU, both in January and March last year as tensions in transatlantic trade escalated. Trump will arrive in France’s Evian-les-Bains to attend a meeting of the Group of Seven wealthy countries, as global leaders become more wary of America. Macron will greet him, as this summit is a diplomatic culmination for his second and last term in office that ends next year. Eurostat data shows that alcohol is one of the EU's biggest exports to the U.S. and will be worth EUR9 billion by 2024. Certain products, such as?Remy Martin champagne and cognac, are required to be made in certain European regions. The U.S. currently charges a 15% duty on wines and spirits that are exported from the EU. Since Trump and Ursula von der Leyen, the president of the European Commission, agreed to a U.S. EU trade agreement in 'Scotland this summer, the French have been working hard to get the rate reduced to zero. Since 2019, France has imposed a 3% tax on digital services revenue earned by companies in France with revenues exceeding EUR25 million and EUR750 millions worldwide.
China's gold imports through Hong Kong rose by around 42% in March m/m
Hong Kong Census and Statistics Department figures released on Monday showed that China's total imports of gold via Hong Kong rose by 41.9% in March compared to February.
The data revealed that China's gold exports to Hong Kong were lower than its net imports in March for the third consecutive month.
China is the largest consumer of gold in the world, and its buying activities can have a significant impact on global gold prices.
Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing.
By the numbers, net imports from Hong Kong into China in March were -4.888 metric tonnes compared to -26.398 tons imported in February.
Hong Kong's total imports of gold by the world's largest gold consumer in March were 21.071 tons, up from 14.851 tonnes in February.
KEY QUOTES The net import for March was only five tonnes, compared to an average of 15 tonnes per week from January-February. This reflects a gradual improvement in mainland demand," said StoneX analyst Rhona OConnel.
The People's Bank of China has reportedly allocated new import quotas for selected international banks in the last few weeks. CONTEXT As a hedge against inflation and global uncertainty, gold has increased by more than 25% by 2025. This is largely due to Trump's tariffs, the expectation of Federal Reserve interest rate cuts, geopolitical tensions between the Middle East, Ukraine and the United States, as well as strong central bank purchases and increased investment in gold-backed ETFs.
Gold discounts in India reached their highest level in almost nine years last week as record prices discouraged buyers. (Reporting and editing by Anmol Choubey and Anjana Anil in Bengaluru)
(source: Reuters)