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Gold drops 1% after strong US payrolls data dampens rate-cut hopes
Gold fell 1% on Thursday as stronger-than-expected U.S. payroll data cemented expectations that the Federal Reserve is unlikely to cut interest rates as early as previously anticipated, denting the metal's appeal. As of 1303 GMT spot gold was down 1% at $3,325.48 an ounce, while U.S. futures gold were down 0.7% at $3,336.00. Bureau of Labor Statistics of the Labor Department reported that non-farm payrolls grew by 147,000 last month. Economists surveyed by had predicted payrolls to rise 110,000. A stronger dollar makes bullion more expensive for overseas buyers. The better-than-expected jobs numbers mean we are less likely to see the Fed cut rates sooner than anticipated. The dollar has strengthened, which puts pressure on the gold market, said David Meger. The key is that any idea or possibility of an interest rate cut in July is off the table. Investors now expect a Federal Reserve rate cut of 53 basis points by the end the year starting in October. This is down from the 66 basis point estimate prior to the report. Gold that does not yield tends to do well in an environment of low interest rates. A trade agreement was announced between the United States of America and Vietnam on Wednesday, ahead of the deadline for U.S. Tariffs to go into effect on July 9. Republicans in the U.S. House of Representatives are advancing Trump's massive spending and tax-cut bill that could add up to $3.4 trillion dollars to the national debt to a final vote. Carsten Menke is an analyst with Julius Baer. He said that as the US debt continues to rise, investors may become more worried about the US dollar. This should help gold on a longer-term basis. Silver spot fell 0.2%, to $36.51, platinum dropped 2.9%, to $1376.80, and palladium lost 2.3%, to $1128.78. (Reporting by Anushree Mukherjee in Bengaluru; editing by Philippa Fletcher)
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Volvo Cars has delayed the start of production at its new Slovak factory until early 2027
Volvo Cars, according to a spokesperson on Thursday, has delayed the large-scale production of its factory in Slovakia from 2026 until early 2027 to optimize the Swedish automaker’s product launch schedule. The Gothenburg-based firm, owned by China’s Geely Holding, hasn't made it public which model will be manufactured at the Kosice plant, except to say that it will be next-generation Volvo. The spokesperson declined to say when the decision was made, but said that it had not been taken recently. Polestar, which is also owned by Geely and will begin production of its new Polestar 7 SUV in Kosice, Poland, starting 2028. The factory is expected to produce 250,000 vehicles annually. Hakan Samuelsson, the new CEO of Volvo Cars in April, said that the automaker would be reviewing the cars it planned to build at the factory and preferred to build cars for Geely as well. Samuelsson, an analyst in April, said: "We have to take a closer look at the possibilities of bringing in other Geely brand there." Shared plant "would be really good for us, because it's an expense that must be carried by the production volume of the factory." Samuelsson, now back at the helm of the Swedish automaker has implemented a number big changes, including the elimination of 3,000 white collar jobs, the launch of a cost cutting programme, and the slowing down investment. Marie Mannes is the reporter. Nick Carey is the writer. (Editing by Mark Potter and Susan Fenton)
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Ambani's Reliance spins off India consumer products business into a new unit
Reliance Industries, owned by Indian billionaire MukeshAmbani, said it would spin off its consumer products unit to create a new company to attract additional investors to the business. Reliance has a consumer business that includes brands like Campa Cola which competes against Coca-Cola and Pepsi. There are also dozens of snacks and confectionery products, such as Mondelez Cadbury chocolates, who fight for shelf space. According to a June 25 order, which was reported for the first time by Indian media, India's National Company Law Tribunal approved the internal restructuring, under which Reliance would transfer its consumer business, from its retail arm, into a subsidiary directly, New Reliance Consumer Products Ltd. According to the order, Reliance stated in its application for approval before the tribunal that "this is a very large business requiring special attention and expertise, as well as different skill sets compared to retail businesses." This business requires large capital expenditures on a continuous basis, and it can attract different investors." Reliance Industries holds a stake of 83.56% in the entity. Reliance Retail has been planning its own IPO. Reliance Retail announced on Thursday a strategic investment in FACEGYM (a facial fitness company and skincare firm based in the UK), without disclosing a specific investment amount. (Reporting and editing by Aditya K. Kalra, Sharon Singleton and Dhwani Paandya)
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French nuclear regulator allows EDF 1300MW reactors to have their lifespan extended
The French nuclear regulator ASNR announced on Thursday that EDF's 1300MW EDF reactors can operate for longer than their 40-year original lifespan. It said that this would require upgrading to raise the safety standards in order to match those of European Pressurised Reactors. During its 40-year inspection, the regulator will set specific safety requirements for every reactor. EDF must also submit annual reports describing its progress towards meeting these requirements. The decision relates to 20 reactors of the 56-strong country's fleet that will reach their current lifespan approved between now and 2020. The regulator approved the extension of EDF's smaller 900MW nuclear reactors. The French President Emmanuel Macron made the expansion of the country's nucleo-production capability a major project. This included extending the lifespans of existing nuclear sites as well as building at least six reactors over the next decades. EDF has been struggling with project delays, overruns in budgets for new plants, and reactor defects. The state spent around 10 billion euro to nationalise the EDF, which was heavily indebted. The CEO Bernard Fontana was appointed earlier this year and has been given the task of accelerating nuclear expansion. He is now looking for ways to raise money to fund upgrades and new construction, and may even consider asset sales.
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JSW Poland renews bid for $444m tax refund amid liquidity crisis
JSW, a state-controlled Polish coal miner, renewed its request on Thursday for a refund of 1.6 billion Zlotys ($443.6 Million) on the "solidarity tax", which is a windfall profit tax. The company faces increasing losses and a cash crunch. JSW claims that the retroactive income tax, which was paid in 2023 and 20,24, is illegal and leads to double taxation. It claims that it did not make windfall profits due to high energy prices but instead faced significant electricity expenses. The company sought a refund from the Ministry of Climate and Environment in April. However, the Ministry declined to take action in June, saying it did not have the authority to determine the constitutionality of the tax. JSW shares are trading 8.7% higher as of 1115 GMT. If the gains continue, they will be on course for their largest daily gain since January 2024. Jakub Szkopek, an analyst at Erste Group, said that JSW's financial situation is still challenging despite its efforts to improve liquidity via the refund. Szkopek said that while the (share) response is positive and speculative, the current situation for the company is not ideal. Low coking coal prices, and the strong Polish zloty versus the U.S. Dollar are still a problem. JSW is Europe's biggest producer of coking, a raw material essential to steel production and on the EU's critical list. $1 = 3.6069 Polish zlotys (Reporting and editing by Milla Nissi-Prussak).
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International carbon credits: Do they combat climate change?
The European Commission proposed a climate goal for 2040, which allows countries to use carbon credits purchased from developing nations in order to reach the EU target for the first ever. What does that mean? And why did the EU's move on Wednesday cause some criticism among scientists and campaigners? What are carbon credits? Carbon credits or offsets are projects that fund projects abroad to reduce CO2 emissions in lieu of reducing your own greenhouse gas emission. For example, converting petrol buses in a city to electric or restoring forests in Brazil are examples. The buyer can use the "credits" to reach its climate goals, while the seller receives funding for their green project. The system, according to its supporters, provides much-needed funds for developing countries' efforts to reduce CO2 emissions and allows them to work together with other countries in order cut emissions globally. The reputation of CO2 credit has been damaged by a series of scandals where projects that generated credits failed to provide the benefits claimed for climate change. Why is the EU buying them? Carbon credits purchased from other countries could cover up to three percentage points of the EU 2040 target, which is to reduce net emissions by 90 percent from 1990 levels. In order to achieve the EU's climate goals, countries must reduce their emissions completely at home. Last year, the EU's executive commission said it hoped that the EU would agree on a 90 percent reduction in emissions by 2040. Carbon credits were not mentioned. Since then, the geopolitical turmoil and economic struggles of European industries has sparked political backlash. Governments from Germany to Poland have demanded a softer goal. The Commission responded by saying it would introduce flexibility and chose carbon credits to achieve the 90% reduction in emissions while reducing domestic steps required to get there. The EU countries, the European Parliament and the European Commission must all agree on the final goal. What are the risks? Carbon credit project developers and countries like Germany welcomed the EU plan as it would boost climate finance. Environmental campaigners warned that the EU is ignoring its domestic efforts to reduce CO2 and warned against relying solely on low-value, cheap credits. Climate science advisors in the EU also oppose buying credits under 2040 targets, as they say that this would divert funds from local clean industries. After a glut of cheap credits that had weak environmental benefits led to a crash in carbon prices, the EU banned international credit from its carbon market. In an effort to reduce the risk, the Commission announced that it would purchase credits in accordance with the global market and trading rules for carbon credits being developed by the U.N. They include quality standards that aim to avoid the problems unregulated credit trading faced in recent times. Next year, Brussels will also propose specific standards on the quality of the carbon credits that the EU purchases. How much will it cost? The EU does not yet know. Carbon credits can range from a few dollars for a tonne CO2 to over $100 depending on the project. According to EU emission records, the bloc would have to purchase at least 140 millions tonnes of CO2 to meet 3% of its 2040 goal. This is roughly equal to the Netherlands total emissions for last year. A senior official of the Commission said that the bloc is determined to not hoard cheap junk credit. "I don’t think it would add any value." "The credits that we see on the voluntary carbon markets today are extremely cheap and this probably reflects an absence of high environmental integrity," said the senior official. (Reporting and editing by PhilippaFletcher; Additional reporting by Virginia Furness)
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Copper prices fall on profit-taking before US jobs data
Copper prices fell on Thursday, as traders and funds profited from long positions in anticipation of the U.S. jobs data which could influence the direction of interest rates and dollar. By 1032 GMT the benchmark copper price on London Metal Exchange had fallen by 0.2% to $9,994 per metric tonne, after reaching a high of $10 020.50 for three months on Wednesday. The volume of trading was low ahead of the U.S. monthly employment report for June. The data is due on Thursday and should show a slight increase in unemployment. Weak growth numbers could cause concern about U.S. economic growth, and allow the Federal Reserve Bank to reduce interest rates. This would have a negative impact on the dollar. The industrial metals price has been boosted this year by a weakening dollar, which makes metals priced in dollars cheaper for buyers using other currencies. A U.S. investigation on potential tariffs for imports of metals used in power and construction could also have a strong impact on the price of copper. This could lead to shortages, and increase prices on COMEX. COMEX copper prices are about $1300 per ton higher than LME, which encourages producers and traders to divert their metal from other markets to the U.S. Tom Price, Panmure Liberum analyst, said: "While U.S. imports of copper have not been subject to a tariff yet... the market has still priced in this risk." A large amount of metal exported to the United States came from warehouses registered with the LME. Stocks of 0#MCUSTXLOC> on the LME have fallen by 65% since mid-February's 2025 peak. At 34%, cancelled warrants or metal that is destined to leave LME's warehouses indicate another 31,900 tonnes are waiting to ship out. Recent data indicates that the premium or backwardation is increasing. Cash copper contracts for three months forward are starting to bring metal back to LME. Copper stocks at the LME in Gwangyang, South Korea, have increased by 2,250 tonnes this week. In Kaohsiung in Taiwan, the stocks are up by 1.250 tons. Other metals saw aluminium slip 0.4% to $2.609 per ton. Zinc eased 0.3% at $2.749; lead rose 0.4%, to $2.068. Tin retreated by 0.2%, to $33,655 while nickel gained 0.7%, to $15,405.
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Human hair is a water-saving device in Chile, a country that has been hit by drought.
The small mats of hair at the base of the plants help to lock in moisture in orchards in Chile, which have suffered from drought for many years. According to the Matter of Trust Chile Foundation, who makes the mats, the hair is turned into sheets or discs of compostable mulch through mechanical weaving. This reduces direct evaporation of up to 71%, and can save as much as 48% of irrigation. "Hair is interesting. "Hair is very interesting. Maria Salazar, a farmer in Taltal in the arid Antofagasta Region of Chile, said that the hair had helped her get optimum crop yields from the lemon trees. Taltal is located about 900 km (560 miles north) of Santiago. Salazar stated that the hair mats were a great benefit for our system, and they also helped to reduce water stress. By providing shade, the hair mats maintain a high level of humidity. They also prevent the sun rays from evaporating our little water. In 2020, the foundation was established to encourage conservation and regeneration by creatively using waste. The hair comes from 350 salons in Chile and 10 pet groomers. About 2% of hair used for the mats is from pets. The foundation also produces a liquid fertiliser made from recycled hair, and an absorbent based on hair that can be used to remove contaminants such as metals, oils and other pollutants from water. (Reporting and additional reporting by Fabian Andres Cambero, Editing by Alexander Villegas & Rosalba OBrien)
Birla's paints bet shakes Asian Paints India's reign
Elara Securities, which has shared exclusive data with us, shows that Asian Paints, India's largest paint manufacturer, has lost more share of the market than analysts had expected in the first year after billionaire Kumar Mangalam Birla launched his ambitious paints venture.
Elara Securities' data shows that Asian Paints market share dropped to 52%, from 59%, in the 12-month period ending March 31. This puts pressure on the leader of the industry to spend more money on marketing and promotions to maintain its crown.
Birla Opus has reached a market share of 6.8% for the last quarter.
"Whenever there is a new entry, their strategies are aggressive. This time the scale has been much larger," said Geojit Financial Services Analyst Antu Thomas. He had originally expected Grasim's market share to be only 1%-2 %.
Birla Opus is the paints division of Aditya Birla Group's Grasim. They have borrowed heavily from Asian Paints to gain ground on the $9.5 billion market that includes Berger Paints Kansai, Indigo Paints, and AkzoNobel India.
Analysts said that after its launch in February 2024 with an investment 100 billion rupees (1.18 billion dollars), the sector expanded at a rate never seen before.
According to interviews with former Asian Paints and paint dealers, the company offered discounts to attract paint dealers. It also hired managers at mid-level positions from Asian Paints and built factories close to its rival's established units.
"Asian Paints accounted for 70% of my paint sales in 2023." In 2024 the share was only 30%," Sunny Rahman said, a paint seller in Kolkata's eastern city, who switched brands because of cheaper prices.
Asian Paints has been hurt by the moves. Last week, it reported a 45% decline in profit for the fourth quarter that was higher than expected. It also warned of the worst demand conditions in decades.
Amit Syngle, CEO of Asian Paints, said in the call after earnings that "in a market where things are already slow the intensity of the competitive action was much more." "It's a double whammy," said Syngle.
INTENSIFYING BATTLE
Asian Paints has not responded to any requests for further information.
Rakshit H. Hargave, CEO of Birla Opus, said that the company has no plans to slow its pace.
Hargave stated that "our objective is to increase market share and, I believe, we have already built that into the plan we have." He denied that the Birla Opus factory locations were chosen based on their proximity to Asian Paints units, and claimed Birla Opus hired across the industry.
Analysts at ICICI Securities have flagged "downside risks" in Asian Paints' forecast, which calls for an EBITDA margin of 18%-20% (operating profit).
"Asian Paints' future is not in steep discounts. Thomas stated that it will be successful by introducing products with differential values. $1 = 84.8553 Indian Rupees
(source: Reuters)