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After Israel-Iran truce, UK midcaps are lifted by travel stocks
Travel stocks led the UK's midcaps on Tuesday as investors were encouraged by signs of eased tensions in Middle East, and a positive forecast from Carnival Cruise Lines. The domestically oriented FTSE 250 rose 1%, reaching a record high of more than a week. Carnival's UK listed shares rose 11.8%, outpacing gains in the midcap index. raised Its annual profit forecast was higher than expected and it beat the second-quarter earnings estimate. The FTSE 350 Travel & Leisure index rose 3.6% after U.S. president Donald Trump announced Israel and Iran reached a 12-day-old ceasefire. Both sides accuse each other Violations The truce was declared on Tuesday. There was relief, however, that a way out of the war had been mapped out. Prices of oil fell 5% as the expectation that the ceasefire would reduce the risk for disruptions in the supply of crude oil. BP and Shell, two British oil companies, fell by 4.8% and 3.8% respectively, weighing on the FTSE 100. The exporter-heavy Index closed flat. It was also affected by the 0.6% increase in the Pound. Data from Kantar, a market research firm, showed that the inflation rate for British groceries rose to 4,7% in the four weeks ending June 15, reaching its highest level since last February. This is a blow to low-income households. Andrew Bailey, Governor of the Bank of England, said that there are now signs of a softening of Britain's labor market. He also reiterated his belief that interest rates will continue to fall. This month, the BoE held interest rates at 4.25%. The markets are pricing in that the central banks will reduce borrowing costs by approximately 50 basis points before the end of the year. SThree, among other stocks, rose 7.4%, after the recruiter reported that improving contractual hiring on the U.S., its second largest market, helped slow down a decline in fees and maintain its profit target. Reporting by Twesha Dhikshit and Sruthi Shankar; Editing and production by Shailesh Kuber and Joe Bavier
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Britain, Kenya and Singapore lead a campaign to increase company demand for carbon credits
Britain, Kenya, and Singapore launched a coalition to encourage companies to purchase carbon credits. The guidelines are aimed at buyers. Carbon market experts describe this as the strongest policy support for such markets yet. Carbon market proponents have been trying to create a market to buy and sell credits that companies can use to offset their emission for decades. Corporate buyers are still hesitant despite the fact that nations agreed on a U.N. backed system at the COP29 conference in Baku. On Tuesday, Britain, France Kenya, Singapore, and Panama announced their intention to reach an agreement on a set of basic principles for business by the COP30 conference in Brazil, in November. This is to encourage demand for a new product that can channel billions in climate finance into countries in need. Ravi Menon is Singapore's Ambassador for Climate Action and one of the first signatories of the coalition. He said that carbon markets were a key lever to unlocking climate action but that buyers lack confidence in the market due to evidence of malpractices at certain projects. He said that the challenge was on the demand-side. Corporates are less willing to purchase credits because of risks associated with greenwashing. Bill Winters said that in the absence of taxation or government regulation, companies must have a reason for "doing the right thing." He said, "Our owners no longer want us to be involved in anything which doesn't generate money." "We must reestablish a virtuous cycle that does not work today." The rules for the use of carbon credits by companies are still not clearly defined. Even the main arbiter in corporate climate action is still consulting about how to use them. Menon said, "Standard setting bodies have done an excellent job. But there is nothing like government." According to Abatable data, the total number of credit cards used annually by buyers has remained around 160 million, even though the number has decreased. Kerry McCarthy, Britain’s climate minister, stated that the coalition wants to send "strong signals" on businesses' use of carbon credits.
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Former US nuclear regulators condemn Trump's firing NRC commissioner
On Tuesday, nearly 30 former employees and officials at the U.S. Nuclear Power Regulator criticized President Donald Trump for firing a commissioner from the independent agency. They said that the action placed politics above safety and public health. Why it's Important The firing of Chris Hanson this month, a Democrat at the five member Nuclear Regulatory Commission, followed Trump's Executive Orders on accelerating the Agency's reactor approvals, as artificial intelligence (AI) and data centers are driving the first increase in U.S. energy demand in 20 years. These orders also included efforts to restructure NRC and evaluate its staffing levels. Experts in nuclear power are opposing the efforts of the administration to increase its political influence on the commission. In recent decades, the nuclear industry has experienced several accidents including Three Mile Island (1979). The NRC is evaluating a variety of designs of new types of nuclear reactors, which supporters claim are safe. KEY QUOTES The authors of the letter sent to the remaining four NRC commissioners as well as to legislators said that "succumbing" to politics and giving up the NRC's autonomy would only decrease the effectiveness of nuclear regulations in the United States and around the globe, and increase the risk of an expensive accident. The signees of the letter, which included Stephen Burns, former NRC Chairman, wrote: "This action threatens the independence of NRC, as it raises a spectre of political considerations having greater weight than the public health and safety." Edwin Lyman, of the Union of Concerned Scientists said: "The Trump Administration's brazen effort to assume total control of NRC is irreparably harming the agency's reputation as a regulator both at home and abroad and poses a grave threat to public security and safety." REACTION Harrison Fields, White House spokesperson, said that Trump was "committed" to modernizing nuclear regulation, streamlining regulatory obstacles, and reforming Nuclear Regulatory Commission, while prioritizing both safety and resilience. The NRC didn't immediately respond to our request for a comment. (Reporting and Editing by Marguerita Chy)
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Steel imports to be subjected to tougher restrictions than anticipated
The British government will impose trade limits on steel that are more restrictive than anticipated, restricting imports from Vietnam and South Korea, as well as Algeria, to protect its domestic supply against the effects of a trade war. Britain is trying to protect its domestic steel industry from an oversupply in the global market. It has taken a number of measures to help it. These include negotiating the removal U.S. Tariffs, which are yet to take full effect, and taking control of British Steel, to stop it from closing down. The global trade upheaval caused by Trump's tariffs, and the fragile state of the steel industry has increased the scrutiny on Britain's trade defense regime. UK Steel, an industry body, had stated that the Trade Remedies Authority's (TRA) proposed measures in May to cap the amount of certain types of steel that could be imported. The levels of these caps were too high. The trade minister Jonathan Reynolds sent a letter to the TRA on Tuesday, stating that he would "reject the recommendations and take a different decisions" by opting for lower caps. These are due to be in force as of July 1. The letter read by us stated that the reason was to balance the need for supply security for the UK market with the effectiveness of steel safeguard measures in the UK. The TRA recommended initially that three categories of metal - UK imports dominated by Vietnam and South Korea, respectively - be subjected to caps. This means that each country could only supply 40% the remaining quota. Imports above that amount will be subjected to a 25% duty. Reynolds stated that the cap will be set at 20% for the categories of steel dominated primarily by Vietnam, and 15% for the categories dominated primarily by Korea and Algeria. This would limit the amount of steel these countries could import to Britain. UK Steel Director Gareth Stace called it a "tremendous result" and said that Reynolds' commitment to the steel industry was demonstrated. The measures will prevent the UK from being swamped by countries that flood the international market with cheap, unsustainable steel and drive our steel producers out of business. Reynolds wrote that the decision will be confirmed after World Trade Organization members have shared their views. Reporting by Alistair Smout, Editing by Topra Chopra
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New Barbados bond bolsters push for disaster debt pause clauses
Barbados issued a bond to help pay off its IMF loan, and free up some money. It also gives it two years fiscal breathing room if the country is hit by severe hurricanes, floods, or even an epidemic of COVID proportions. If it is well received, this could set a precedent for normalising the so-called climate resilient clauses in debt that have been lukewarmly accepted since they were introduced in recent years due to a perception that they might increase borrowing costs. Barbados' $500 million bond replaced an existing one. It is the first international bond of a "benchmark" size to include the climate and pandemic clauses. Most other examples are the result of debt swaps or restructurations. The debt was offered with an 8% discount, which, after adjusting for the modest difference between the maturity dates, was slightly below the 8.25% that Bahamas, the Caribbean counterpart, sold a bond last week. However, Bahamas' bond did not have payment deferral. White Oak Advisory managing Director Sebastian Espinosa advised Barbados and said: "This should put an end to the debate about whether the market would demand a premium if these clauses were included." The feedback we received confirms the fact that investors see these clauses in a practical way to deal with rising climate risks. This fits in with a larger push by Barbados Prime Minister Mia Mottley, and other world leaders from developing countries to try to avoid climate change pushing more vulnerable nations into debt crises. The Spanish government is also promoting them as part of the U.N. Development Finance Conference in Seville, next week. A number of top banks are expected to announce that they will offer them automatically in many of their loan products. The Barbados buyback is expected to release around $370 million from now until 2029. It will also help Barbados prepay some IMF loans, so that it can reduce borrowing and the surcharges currently paid to the Fund. (Reporting and editing by Alexandra Hudson.)
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Senior military official: Houthis in Yemen are likely to pose a persistent problem for the US
A senior U.S. official stated on Tuesday that Yemen's Iran aligned Houthi group will be a persistent issue for the U.S. even after Washington reached an agreement with the Houthis last month, ending a U.S. aerial campaign against the group. Air Force Lieutenant-General Alexus Grynkewich told lawmakers that the Houthis will likely be a persistent issue... with which we'll have to deal in the future. Grynkewich was nominated as the new commander of U.S. Military's European Command. Last month, Donald Trump announced that the U.S. was ceasing to bomb the Houthis who were firing on U.S. warships, as well as commercial vessels, off Yemen's coastline. Under the agreement, the group that had claimed to be acting in solidarity for Palestinians during Israel’s military campaign against Gaza stopped firing on U.S. vessels. During the U.S. bombing of Yemen, which lasted for nearly two months, rights groups expressed concern about civilian casualties. The Houthis warned last week that they would target U.S. vessels in the Red Sea again if Washington joined Israeli attacks against Iran. They haven't resumed their attacks despite the fact that the U.S. bombed three Iranian nuclear sites over the weekend. Trump announced a ceasefire agreement between Israel and Iran on Monday. Reporting by Phil Stewart, Idrees Al-Il; Editing by David Gregorio
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TSX reaches new highs after Iran-Israel truce
Canada's main index of stocks edged up on Tuesday, after U.S. president Donald Trump announced that a ceasefire would be declared between Iran and Israel. However, losses in the heavyweight mining sector kept gains at bay. The S&P/TSX composite index increased 0.3% to 26,686.38. The truce remained fragile, however, as Trump accused both countries of violating their ceasefire agreement. Israel admitted that it struck Iran's radar as a retaliation to Iranian missile launches, but claimed that it had not carried out any further attacks. Tehran has denied accusations that it violated the truce. Josh Sheluk is the portfolio manager of Verecan Capital Management. He said, "Markets will remain volatile because news releases are coming out every hour. The TSX fell by 1.8% as mining stocks declined after the gold price dropped nearly 2%. G Mining and SSR Mining, which fell 5.4% and 4.9% respectively, were the two top gold miners on the index. Energy sector fell 0.3% due to the fall in oil price. Information and Technology grew by 1.6%. Shopify shares rose 4% for the third consecutive day, giving the benchmark index the largest boost. Canada's annual rate of inflation was unchanged in May at 1.7%, thanks to a decline in the price of gasoline. The Bank of Canada will consider the inflation data for May and June, which are expected to be released before its policy meeting in July. Canada and Europe have agreed to strengthen their security ties in advance of the NATO summit at The Hague. (Reporting and editing by Shreya biswas in Bengaluru, Sukriti gupta, Twesha dikshit)
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Extreme heat can be dangerous to public health
Authorities and public health specialists in the United States issued warnings about heat to keep people safe as tens of thousand people prepared for even more extreme heat on Monday. The Midwest and East Coast of the United States, as well as much of Southern Europe, experienced temperatures in the 90s Fahrenheit this week. What are the health risks from extreme heat? Heat can have a variety of effects on health. Heat exhaustion can cause a person to feel dizzy, shaken, thirsty, or get a headache. Heat exhaustion is usually not serious, unless a person cannot cool down in 30 minutes. Heatstroke is a medical emergency that occurs when the core body temperature rises above 40 degrees Celsius. Heatstroke can cause rapid breathing, confusion or nausea. Heatstroke, if not treated immediately, can cause organ damage or death. Heatstroke is especially dangerous when combined high humidity. This makes it difficult for people to sweat and cool themselves down. Climate change is expected to increase both, since warmer air can hold a greater amount of moisture. Who is at Risk? Some populations are more susceptible to extreme heat than others. Experts are concerned most about the elderly, babies and those who are socially excluded. Also, they are concerned about people who struggle economically and outdoor workers. Pre-existing conditions such as diabetes, lung disease or heart problems should also make you extra cautious. Experts believe that more deaths happen earlier in the summer, when bodies haven't had time to acclimatize. Many countries don't record extreme heat as a cause of death, so statistics on heat-related mortality are considered to be an underestimation. LESS OBVIOUS RISKS FROM EXTREME HEAT Extreme heat poses a number of secondary risks. It can test the body's capacity to regulate temperature. Temperatures that are warmer encourage bacteria and algae growth. Heatwaves increase the risk that water will be contaminated by diseases like cholera or lakes and rivers may become choked with toxic algal growth. Heat can also cause damage to crops, roads or transport systems. Air pollution can be dangerously high when wildfires are fueled by trees and shrubs that have dried out. Heat stress and sleep disturbances caused by heat can also affect mental health. Climate change will allow disease-carrying insect to spread into new areas, according to medical experts. Scientists have also mapped out the expansion of Aedes mosquitoes that carry Zika, dengue and chikungunya. As temperatures rise in California's Central Valley the fungal spores which cause Valley fever, which love deserts, could thrive. What You Can Do All across the United States, public health advisories urge people to keep cool, hydrate themselves, and avoid excessive exercise. Many cities offer free air-conditioned public transportation or public cooling centers. Employers must ensure that workers are hydrated and have enough breaks. They should also make sure they do not work outdoors in dangerous heat. (Reporting and editing by Kevin Liffey; reporting by Katy Daigle)
Tata Motors, owner of JLR, says there has been no panic button pressed on curbs made from rare earths.
Tata Motors (owner of Jaguar Land Rover), the luxury carmaker, announced on Tuesday that it was planning alternative sources for rare earth magnets. The company also said that China's export restrictions haven't caused them to panic yet.
China's restrictions on rare-earth imports have caused a global automotive industry disruption. Companies are warning of an extreme supply shortage. Rare-earth magnetic materials are used for everything from anti-lock brake sensors to windshield wiper motors.
"At the moment, I don't think there is any panic as we are confident that supplies will be forthcoming." No production has been curtailed. "At this time, nothing is planned," CFO PB Baliaji said at a Mumbai event.
He added that sources, such as alternate technologies, were being investigated.
Maruti Suzuki India's largest carmaker has cut its near-term production target for its electric vehicle eVitara by more than two thirds due to rare-earth shortages.
China controls over 90% of global magnet processing capacity, which is used in automobiles, home appliances, and clean energy. As part of its response to the high tariffs imposed by the United States, China enacted in April restrictions that required companies to obtain permits from Beijing.
Early June, it was reported that India held talks with companies in order to create long-term stocks of rare earth magnets.
Balaji said that Jaguar Land Rover's luxury division, Tata Motors, would take price increases "in a calibrated way" to counteract the impact of U.S. Tariffs.
Range Rover lowered its forecast for fiscal 2026 earnings margins before interest and tax to 5%-7% from 10% last week, amid uncertainty surrounding the global auto industry due to U.S. Tariffs.
Balaji said that Tata Motors does not plan to build a manufacturing facility in the U.S., as a way to offset the tariff impact. Aditi in Mumbai, Meenakshi in Bengaluru and Manvi in Bengaluru. Reporting by Aditi and Meenakshi. Writing by Manvi. Editing by Sonia Cheema, Rashma Aich and Sonia Cheema.
(source: Reuters)