Latest News
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White House rallies utilities and data centers to AI power costs
Three people with knowledge of the plan say that 'the White House intends to gather utility companies and developers for a voluntary commitment designed to ensure that rapid growth in demand for electricity from artificial intelligence doesn't drive up bills for homes and businesses. In the next few weeks, an event will be held to announce this initiative. Several companies are expected to participate and pledge to protect existing ratepayers from having to shoulder all of the costs associated with AI expansion. Sources said that the guest list was still being finalized. The White House did not respond when contacted for comment. The soaring demand for power from data centers in many states has led regulators, consumer groups and lawmakers to warn that consumers could be forced to subsidise grid upgrades to service some of the largest technology companies. This raises questions about whether the pledge is going to deliver on concrete commitments or just remain symbolic. The Trump administration hopes to avoid political backlash due to rising electricity costs as it pushes for the expansion of AI infrastructure. Amazon, Google Meta, Microsoft OpenAI, Oracle, and xAI all signed a "Ratepayer Protect Pledge" earlier this year at a White House event, committing themselves to pay for the electricity infrastructure required to support their AI projects, rather than pass those costs onto existing utility customers. The companies have agreed to help pay for grid upgrades, new power generation and other costs associated with their data centers. This includes unused reserved capacity. The White House stated that the commitments are designed to stop 'households subsidizing AI infrastructure growth. People familiar with the plans say that the new event will broaden the?commitments by bringing together electric utilities, companies who build and operate datacenters on behalf of Big Tech and governors from states in the forefront of expanding the power infrastructure required to accommodate the anticipated surge in electricity demand. White House officials have argued that America can only win the AI race by rapidly increasing electricity generation and transmission, but that consumers shouldn't bear the financial burden. The initiative is being marketed by administration officials as a way to assure voters that AI investments and lower energy prices can coexist.
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Cubans inside one Havana apartment as it goes dark
Frank Alfonso spends most nights sleeping on his roof in Havana to avoid the oppressive heat and blackouts. On Friday, however, the 'rain' arrived at the same time as Cuba's grid collapsed. This left him without any respite in the island's energy crisis. Alfonso lives in a tenement known as a "solare" in Havana. It is one of the thousands of cramped, old buildings that have been subdivided by residents into tiny living quarters. Despite the U.S. oil embargo, many of these complexes continue to suffer from extended power shortages due to Cuba's aging infrastructure. He said, "We didn't realize that the grid was down this time because we were already experiencing a blackout." Documented how Alfonso, his family, and their neighbors coped with what is now a daily reality for them: living in darkness. Residents go days without water when there is no power Yunaisi Durruti, 51, sat on an armchair in front of Alfonso’s apartment late Friday night. The tip of her cigarette was the only light. Her primary concern: water. Her tap was dry for more than a week, because the pump needed electricity to transport water from her apartment's tank at the second-floor cistern. She said that during the few hours of power each day, the cistern is often empty because of routine water cuts. Durruti studied gastronomy in Havana when she was young. She then worked for 10 years in the kitchen of an exclusive beach resort run by the Spanish hotel chain Melia. Her days of following her passion for cooking are over. She is a security guard who, after working, heads home to her parents' house, in a less-frequently blacked out neighborhood, to wash, shower and cook. She doesn't keep food in her refrigerator because it would spoil. Melia said it was leaving Cuba after the U.S. tightened sanctions in spring. Durruti noted that Cuba's culture of neighborly solidarity, a feeling of community forged through decades of living on the island, helps to mitigate the effects of the severe shortages. But there are limitations. She said, "Everyone is welcome to share a bucket of water." "But more is not possible in this crisis." A PROPHECY CAME TRUE Since years, the island's infrastructure has been deteriorating, including its electric grid. Residents of the tenement said that the energy cuts they experienced in the past became interminable as the U.S. oil blockade took hold. Thalia Castillo (28), a 28-year-old mother, nursed her 3-month old baby, Thayler on Saturday afternoon. A small,'rechargeable' fan kept mosquitoes and hot air off of his back. Castillo, her husband Lazaro Herrera and their children enjoyed power for several hours even after the grid went down, thanks to the power station that Castillo’s grandmother sent them from the United States. This power ran out quickly. Another luxury, funded by relatives in the U.S., was thawing a frozen package of beef. Castillo cleaned up the blood pools that were leaking into the fridge every few hours. Their kitchen was decorated with small statues of Yoruba gods. Herrera is an Afro-Cuban priest, also known as a Babalawo. This religion is widely practiced in the island. Every year, community elders make a series predictions. The prophecy for January warned of turmoil and conflict. He said, "Everything is coming true so far." A MOMENT OF LUMINOUS LIGHT Alfonso ran back to the building shortly?before 9:00 pm on Saturday. Electricity was still not working. Argentina's World Cup Quarter-final against Switzerland was about begin. He and Herrera devised a plan to deal with the blackouts. They mounted Herrera's TV outside on a rack and connected it to a generator located across the street. Before kickoff, several dozen residents of the building and their neighbors had gathered in the street to watch the game. A woman from the second floor of the building sat at the door and scolded the kids who were blocking her view. When Argentina's first goal was scored, cheers erupted. The street was still in darkness all the way up to Havana’s seafront boulevard. Reporting by Ayose Naranjo and Laura Gottesdiener, Havana. Editing by Aurora Ellis.
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South Africa proposes mandatory fuel stock to prevent crises
A?policy paper revealed that South Africa plans to revamp its strategic 'fuel storage capacity,' requiring both the state and private sectors to maintain mandatory reserves in order to reduce supply crises. Energy prices and supplies have been under pressure in recent months because of the ongoing Middle East crisis that has cut off the Strait of Hormuz - a major oil and LNG transit route. According to the proposals, which are outlined in the document of the Department of Mineral and Petroleum Resources (DMP), all licensed oil and fuel wholesalers and importers would be required to keep 21 days worth stock, with 70% being allocated to crude oil, and the rest to refined products like diesel or jet fuel. The state is to maintain strategic stocks of 60 days with the same division. The buffer can be?released during a state of emergency declared in "catastrophic" events. The document stated that "South Africa must have a Strategic Stocks Policy in order to improve its state of preparedness in the event of a major disruption of oil supplies." The draft policy, open for public consultation, if approved, would be the first significant boost in the strategic fuel reserves of the country since the 1970s when the apartheid regime?built underground crude storage facilities at Saldanha, on the 'west coast. However, no specific storage levels have been established to support operations. The new state stock would be managed at the Saldanha & Milnerton storage facility. The Fuels Industry Association of South Africa (which represents oil companies in the country) did not respond immediately to a comment request. According to estimates by the government, South Africa, which has lost around?half its refinery capacities in recent years uses 27 billion litres per year of oil products. (Reporting and editing by Andrei Khalip, Wendell Roelf)
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Gold prices continue to decline as Middle East tensions support a higher-for longer rate view
Gold prices fell for a second session in a row on Monday, as renewed 'hostilities' in the Middle East fueled inflationary fears and raised expectations that the U.S. Federal Reserve would keep interest rates high for longer. Spot gold fell 1.2% at $4,072.49 an ounce as of 0847 GMT. U.S. Gold futures for August were down 0.8% at $4,081.30. U.S. forces and 'Iranian forces have exchanged heavy drone and missile assaults. Tehran has targeted U.S. facilities in states on the other side of the 'Gulf, and hinted at the closing of the Strait of Hormuz. On hearing the news, oil prices rose by nearly 3%. Ole Hansen, a Saxo Bank analyst, said that renewed hostilities in Gulf region rekindle fears about inflation and further Federal Reserve tightening. This creates additional headwinds for gold through higher bond yields as well as a stronger dollar. Hansen stated that the focus on the Middle East, higher oil prices and low liquidity during summer holidays are the key risks which may push gold prices beyond their current range of $3900 to $4200. The opportunity cost of non-yielding gold increases as interest rates rise. According to CME FedWatch?Tool, traders are now pricing in a?71% probability of a U.S. Fed rate hike in September. This is up from?63% last week. This week, the U.S. releases a lot of economic data, including the Producer Price Index and Consumer Price Index for June, as well as retail sales and weekly unemployment claims. Kevin Warsh will make his first appearance before Congress on Tuesday and on Wednesday to provide a further insight into the economy, inflation, and monetary policies goals. COMEX gold traders reduced their net long position by 1,964 contracts to 114.854 during the week ending July 7 after three consecutive weeks of increasing. (Reporting by Sukanya Mitra in Bengaluru; Editing by Barbara Lewis) (Reporting by Sukanya Mitra in Bengaluru; Editing by Barbara Lewis)
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Copper drops as Middle East conflict renews inflation risk
Prices of copper fell on Monday, as the fighting between the U.S. Benchmark three-month Copper?on the?London Metal Exchange fell 0.64% to $13,398.5 per metric ton at 0701 GMT. The Shanghai Futures Exchange's most traded copper contract fell 0.68%, to 103100 yuan (15,199.54 USD) per ton. U.S. forces and Iranian forces traded heavy drone and missile assaults at the weekend. This dampened risk appetite, and reignited fears that rising energy prices and inflation could lead policymakers to raise interest rates for longer. The pressure on industrial metals is increased by higher interest rates. Gold and silver that do not yield any interest rose in price, but oil prices fell. The U.S. dollar ?strengthened slightly over the weekend, making greenback-denominated commodities like copper more expensive ?for buyers using other ?currencies. Aluminium has largely brushed off any potential disruption in supply, which was expected to return to normal following an interim agreement after the war broke out on February 28. The LME saw a drop of 0.33%, while the SHFE fell by 0.65%. The announcements of several production restarts have put pressure on the price of aluminium. On Friday, major supplier Emirates Global Aluminium announced that it had restarted its UAE alumina refinery. The exchange data showed that visible stocks of aluminium in LME registered warehouses had fallen to their lowest level since 2022. In June, 95% of the?available stock was of Russian origin. Zinc, lead, and nickel all fell in value on the LME. Tin also dropped by 0.23%. On the SHFE, zinc fell 0.84%. Lead dropped 0.66%. Nickel dipped by 0.23%. Tin dropped 1.7%.
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France sends water-bombers to combat wildfires outside Paris
The fire was brought under control by more than 400 French firefighters who worked through the night. Two waterbombing aircraft were sent to the scene on Monday, as western Europe suffered a heatwave. The fire started along a highway near Fontainebleau. This is home to one France's most famous royal palaces. It was once used as a hunting lodge for monarchs and an autumn retreat. The flames scorched over 800 hectares (1.980 acres) by midnight, fanned on by hot winds. The fire, which was only 70 km (43.5 miles), from Paris forced the closure of the A6 highway connecting Paris to Lyon and the South. Other smaller fires also caused disruptions to high-speed train services. The French fire service stated on X that "the fight continues today." Residents have been warned that Canadair planes will scoop water out of the Seine River, which runs through central Paris. European countries are concerned about the increasing frequency of heatwaves, and temperatures that break records. Scientists say that climate change is to blame for the recent fires in Europe. Wildfires have already scorched thousands of hectares in France, Spain and Portugal. A blaze in Spain's Almeria province, located in the south-east of the country, has claimed 13 lives. This includes a British woman aged 93 who died from burns. This summer, Western Europe has been sweltering in temperatures for the third time. The heatwave that occurred in late June is likely to have killed thousands, as countries reported more than 10,000 "excess deaths". In France, Spain, and Britain, power supplies were disrupted and schools closed. Temperature records were broken. This kind of excess is not common at this time of the year. It's?high", said Lasse Vestergaard. Chief physician at Denmark's Statens Serum Institut. EuroMOMO is a Europe-wide mortality monitoring system. Vestergaard said that it was difficult to explain the high mortality rate by anything other than extreme heat.
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Gulf markets are in the red as hostilities escalate
The major Gulf stock markets fell on Monday as hostilities increased in the region. Iran also announced that it had closed the Strait of Hormuz - a strategically important waterway - causing oil prices to rise and rekindling global inflation fears. Central Command reports that U.S. forces launched a second wave of strikes on Iran Sunday. They used precision munitions to target dozens of locations in multiple locations. Iran's Revolutionary Guards claimed Monday that they had "retaliated" by attacking U.S. bases in Kuwait, Bahrain and other countries. U.S. president Donald 'Trump' said on Sunday that commercial traffic was still allowed through the Strait of Hormuz, despite Iran declaring earlier that the waterway had been closed after it struck a vessel that Iran claimed had taken an unauthorized route. The growing conflict has 'cast new uncertainty on the future of the interim U.S. Iran agreement signed last week, which sought to reopen strait after 60 more days of negotiation and end the war. Saudi Arabia's benchmark oil index fell 0.2%. Saudi Aramco dropped 0.5%. Brent crude futures rose $3.10 or 4.08% to $79.11 at 0325 GMT. Dubai's main stock index fell 1.4%. This was mainly due to a 2.6% drop in the number one lender, Emirates NBD.DU, and a 1.4% decline in blue-chip developer Emaar Properties. In Abu Dhabi the index dropped 0.5% with the?Abu Dhabi Islamic Bank falling 2.1%. The United Arab Emirates’?defence minister said on Sunday that its air defence systems were responding in response to a threat from a missile. Qatar's stock exchange closed as it mourned the death of Sheikh Hamad Bin Khalifa Al Thani, His Highness Father Emir.
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CEE ECONOMY - Romanian inflation starts to fall, but domestic and international politics pose risks
The central bank is expected to hold interest rates through 2027, as they weigh domestic political instability, currency weaknesses and geopolitical risk. Data from the National Statistics Board revealed on Monday that consumer prices dropped to 10.42% in June from 10.85% in may, and were below analyst expectations of 10.55%. Prices increased 0.06% from the previous month. Central bank officials expect inflation to drop sharply during the third quarter, once the effects of the higher electricity and tax increases implemented last year in order to reduce the biggest?budget gap in the European Union have faded. Political uncertainty following the collapse of the pro-European government and the failure to reach an agreement on a new majority in parliament, as well as the breakdown of the interim agreement to end the conflict between the United States & Iran, increased risks for inflation. Inflation is expected to return to its target range of 1.5%-3.5% in the third quarter next year. It held its benchmark interest rate, the EU's most high, at 6.5% earlier this month. This was done to balance political uncertainty and expected?falls? in inflation against a shrinking economic. The four parties that made up the pro-European broad government coalition in Romania, which collapsed in May, have not yet agreed on a new cabinet formula. This prolonged policy deadlock threatens the country's ability to access EU funds as well as its sovereign credit rating. It is currently rated on the 'last rung' of investment grade. The central bank is not expected to reduce interest rates until the first quarter next year, according to analysts polled earlier this month. (Reporting and editing by Sumana Niandy, Kirsty Donovan; Luiza Ilie is the reporter.
Iron ore prices fall on weak Chinese demand
Iron ore futures fell on Tuesday as disappointing factory data, and the persistent problems in China's property sector dampened sentiment.
The bearish outlook was boosted by warnings from Australian authorities about lower prices and the expectation of a softer season demand.
The September contract for iron ore on China's Dalian Commodity Exchange ended 1.32% down at 708.5 Yuan ($98.92).
As of 0533 GMT, the benchmark August iron ore traded on Singapore Exchange fell by 0.98% to $93 per ton.
China's manufacturing sector shrank in June for the third consecutive month, but at a slightly slower pace. The business climate remains subdued.
ANZ stated that the continued weakness of China's real estate sector, and a report by the Australian government warning about lower prices because of a weak outlook, further weighed down sentiment.
China Metallurgical News reported last week that Jiang Wei was the secretary general of China Iron and Steel Association and advised authorities to limit billet exports.
The announcement came after shipments of semi-finished products, including steel semi-finished products, surged in the first half of this year.
Customs data shows that China's steel exports have more than tripled during the first five months in 2025. The steel association has warned that full-year shipments may exceed 10 million tonnes.
The Chinese consultancy Mysteel reported that the total volume of iron ore shipped to destinations worldwide from Australia and Brazil, two top producers, has fallen 7.4% between June 23-29. This is a reversal of the previous week's increase.
Coking coal and coke, which are used to make steel, also fell on the DCE. They lost 3.32% each and 2.46% respectively.
The benchmarks for steel on the Shanghai Futures Exchange have mostly fallen. Rebar fell 0.2%, while wire rod and stainless steel both lost 0.87%. Hot-rolled coils gained 0.06%.
(source: Reuters)