Latest News
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16 people are killed in attacks on Syrian security forces sent out to quell sectarian conflicts
The defence ministry reported that 16 members of Syria's Security Forces were killed in Sweida (a predominantly Druze city), after they were deployed to quell deadly inter-sectarian violence which local media reported resumed on Monday. After months of tensions, Sunday's clashes between Druze tribal fighters and Bedouin militiamen marked the first instance of sectarian violence in Sweida. The defence ministry issued a press release in which it said that "outlawed group", who were not identified, had attacked several of its units before dawn. It claimed that its forces had responded to the attack, and pursued groups who refused to cease hostilities or continued to target security personnel. In a previous statement, the Defence Ministry said that the fighting on Sunday had left 30 dead. This prompted Syria's Security Forces to send units into the city in order to restore calm and ensure safe passage for any civilians who wanted to leave. Sweida24, a local news outlet, reported that violent clashes erupted again on Monday. According to a second source, the Syrian army will try to establish state control in the entire province to stop any further violence. However, this may take several days. The latest bloodshed was a result of sectarian violence in Syria. Minority groups are increasingly afraid since islamist-led rebels ousted President Bashar Al-Assad and installed their own government. Sunni Muslim Arab groups that fought Assad in the war have agreed to dissolve and become part of the Defence Ministry. However, efforts to integrate armed groups from minorities - such as Druze and Kurds – are largely stalled. Israel's policy of not allowing Syria's army to move south of Damascus, and insisting that Sweida along with neighbouring provinces form a demilitarized area has complicated efforts in southern Syria. In a statement published by state media, Interior Minister Anas Khattab stated that "the absence of state institutions, particularly military and security institutions is the major cause of ongoing tensions in Sweida" and its surrounding areas. Witnesses said that the violence on Sunday was a result of a series of kidnappings including Friday's abduction of Druze merchants on the highway connecting Damascus and Sweida. Khalil Ashawi, Maya Gebeily and Nayera Abdallah in Beirut; Tala Ramadan and Aidan Lewis in Dubai contributed to the report.
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US Court of appeal delays the sale of Argentina's 51% YPF share
A U.S. Judge on Monday temporarily halted the enforcement of an order requiring Argentina's 51% stake in oil company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District Court Judge Loretta Preska's decision in Manhattan provides temporary relief for the cash-strapped South American nation, which warned that its economy would be unstable if it was forced to give up YPF's stake. Preska had originally scheduled a turnover for Monday but extended the deadline until July 17 in order to give time to appeal. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina is appealing the judgement. Preska, on June 30, ordered that the government turn over its YPF stake in 14 days. Burford said Argentina's years of evasion and a commercial exception justified a turn-over. Argentina said in a filing to the court on Thursday that "the stakes couldn't be higher." It warned that forcing a turn-around would irreparably damage its sovereignty, interfere in foreign relations, violate the international law, and expand wrongly the power of U.S. Courts. The Argentina compared a turn-over to a foreign judge ordering the U.S. Government to ship gold stored at Fort Knox out of the country, because this court misinterpreted U.S. laws. It also claimed that it would be unfair for the country to relinquish its control of the largest energy company in the country, even if it won the case. Reporting by Jonathan Stempel, New York; Editing by William Mallard
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China informs EU of new climate targets coming in autumn
Teresa Ribera, the green chief of the European Commission, said that Chinese officials told the European Union their country would produce a national plan in the fall to combat climate change. China and the EU missed the February deadline for submitting new national climate change goals to the United Nations. These targets set out the amount a country would reduce its greenhouse gas emission by 2035. They will be used to evaluate global progress in avoiding catastrophic levels of warming. Ribera told reporters that both parties were working to achieve their national determined contributions (NDCs) ahead of the U.N. climate summit in November. Teresa Ribera oversees EU climate policy. She said, "They have committed themselves to an NDC which is comprehensive, in that it includes the entire economy, and takes into account all greenhouse gasses." She said that they would be releasing a concrete update in the fall. The Chinese foreign ministry has not responded to an immediate comment on the timeline. In April, President Xi Jinping stated that China would announce their new goal prior to COP30. He did not specify a specific date. Despite the fact that U.S. president Donald Trump pulled his country from global climate talks, and reduced U.S. funding for clean energy, Brazil is hosting COP30. It has tried to convince major economies to set aggressive targets and reaffirm commitments to combat climate change. Most nations still haven't announced their climate plans. This month, the EU proposed a climate target for 2040. The 27 EU member countries will now negotiate with the European Parliament. The EU is yet to confirm the 2035 climate target. (Reporting and writing by Liz Lee and Kate Abnett, Ethan Wang, Kirsty Donovan, Alison Williams).
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Ministry says heatwaves in Spain have caused 1,180 deaths over the past two months.
The Environment Ministry reported on Monday that high temperatures have caused 1180 deaths in Spain over the last two months. This is a significant increase compared to the same period in 2017. Data cited by the report showed that more than half of those who died were women and that most were older. Galicia was the most affected region, followed by La Rioja, Asturias, and Cantabria. These regions are all in the northern half, where temperatures in summer have been rising in recent years. Spain, like other Western European countries, has experienced extreme heat over the past few weeks. Temperatures often reached 40 degrees Celsius. In a statement, the Ministry of Health cited data from the Carlos III Health Institute to show that the number of people who died due to heat-related reasons between May 16th and July 13th was 1,180 compared to 70 during the same period in 2020. The first week of July saw a significant increase in deaths. The ministry stated that the data showed an "event of exceptional intensity" characterized by a rise in temperatures averages unprecedented in history and an increase in deaths attributable heatwaves. In the data period, there were 76 alerts of extreme heat compared to none a year ago. According to the Carlos III Health Institute, 2191 deaths in Spain were caused by heat last summer. The data from Spain follow a rapid scientific study published on 9 July that stated around 2,300 deaths due to heat-related causes in 12 European cities over a 10-day period leading up to 2 July. The study by Imperial College London and London School of Hygiene and Tropical Medicine did not use the same methodology that the Spanish data.
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Gold prices remain stable after a three-week high
The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have also risen to their highest level since September 2011, Gold spot was unchanged at $3,356.95 an ounce as of 937 am EDT (1337 GMT) after having reached its highest level since earlier in June. U.S. Gold Futures remained at $3,365.30. Bart Melek is the head of commodity strategy at TD Securities. He said that after a price hike, there are some profits being taken, but overall, gold remains well-bid. The European Union, South Korea and President Donald Trump are working together on trade agreements. Trump intensified his trade war Saturday by announcing he would add a 30% tariff to most imports coming from Mexico and the EU from next month. He also issued similar warnings against other countries, including Japan and South Korea. Investors are now awaiting Tuesday's U.S. Consumer Price Index and Wednesday's Producer Price Index reports for clues as to the Federal Reserve's possible policy path. Market participants currently believe that there is a high likelihood of a 50 basis-point rate cut by the end this year. Melek continued, "We have heard the U.S. president continue to make comments that he wants to see lower rates of interest and I believe that in the end he is quite supportive for gold." In a low interest rate environment, gold's appeal increases because it is not a yielding asset. Silver spot gained 1.1%, reaching its highest level since the September 2011 session. Nitesh Sha, a commodities strategist at WisdomTree, said that silver has solid fundamentals. The metal is in a deficit of supply and the demand for solar remains strong. The gold-to-silver ratio is approaching 86. Palladium and platinum also fell, with palladium down 2.6% at $1,183.75 after reaching a record high of more than eight months earlier today. (Reporting and editing by Nick Zieminski in Bengaluru, Anushree mhukerjee and Sarah Qureshi)
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Alcoa faces a loss of up to $110 Million as the restart of Spain's aluminium smelter is delayed until mid-2026
Alcoa Corp announced on Monday that it anticipates a loss of up to $110,000,000 due to the delay in the restarting of its San Ciprian Aluminium Smelter in Spain. The plant's production was halted in 2021 because of high electricity prices. The plant was in the process to be restarted, but this was delayed because Spain was hit with a nationwide blackout on the 28th of April. This disrupted the smelter as well as an adjacent refinery. The smelter is operated by Alcoa in a joint venture with Ignis Equity Holdings since March. Alcoa now expects a net loss between $90 and $110 million by 2025. This is tied to the smelter. This includes the pre-tax impact and non-controlling interests, translating into a loss between $0.35 and $0.42 per share. The associated cash used for operations is expected to be between $110 and $130 millions. The companies delayed their restart efforts until they received further assurances from Spain's government about the cause of outage and reliability of the national grid. The company website states that the San Ciprian facility includes an alumina factory with a 1.5 million tonne capacity per year. This plant supplies Alcoa, other producers and external customers from non-metallurgical industries such as ceramics and chemicals. The primary aluminium smelter adjacent has a capacity of 228,000 tons per year. Reporting by Sherin Varghese, Bengaluru. Editing by Susan Fenton
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Trump's Trade War: Major Developments
The tariffs imposed by Donald Trump since his inauguration on January 20, 2017 have sent shockwaves through financial markets, and uncertainty has spread throughout the global economy. This timeline shows the major events: Trump imposes tariffs of 25% on Mexican imports, 10% on Chinese goods and most Canadian imports from February 1. He demands that they reduce the flow fentanyl into the United States and the illegal immigration. Trump agrees to a 30-day suspension of his tariff threat against Mexico and Canada in exchange for concessions made on border security and criminal enforcement. The U.S. doesn't reach a similar deal with China. Trump delays tariffs until the Commerce Department confirms that systems and procedures are in place for processing low-cost packages from China and collecting tariff revenue. Trump increases tariffs on aluminum and steel to 25%, "without any exceptions or exclusions". March 3 - Trump announces that 25% tariffs will be imposed on imports from Mexico and Canada from March 4, and that all Chinese imports will face a 20% tariff on fentanyl. After a phone call with General Motors, Ford and Stellantis' chairperson and CEOs, he agrees to defer tariffs on certain vehicles manufactured in Canada and Mexico for a month. Trump exempts Canadian and Mexican goods under the North American Trade Pact from 25% tariffs for one month. Trump announces a 25% import tariff on cars and light trucks. April 2 - He announces global duties with a base of 10% on all imports, and significant higher duties for some of the United States biggest trading partners. Trump suspends most of the country-specific tariffs he had imposed less than 24 hours before, following a financial market upheaval that had erased trillions from stock exchanges worldwide. The blanket 10% duty on nearly all U.S. imported goods remains in place. Trump has said he'll raise the tariffs on Chinese imports from 104% to 125%. The extra duties on Chinese products, including those related to fentanyl, will now be 145%. The U.S. government grants exemptions to steep tariffs on some electronics, including smartphones and computers, imported from China. In an effort to impose tariffs in both sectors, the Trump administration launched national security investigations under Section 232 of Trade Act of 1962 on imports of pharmaceuticals and semiconductors. May 4, Trump imposes 100% tariffs on all films produced outside of the U.S. May 9 - Trump announces a limited bilateral agreement with British Prime Minister Keir starmer that keeps 10% tariffs in place on British exports and modestly increases agricultural access to both countries. It also lowers U.S. prohibitive duties on British auto exports. On May 12, the U.S. & China agreed to temporarily reduce reciprocal tariffs. The U.S. and China agree to temporarily reduce reciprocal tariffs. May 13: The U.S. reduces the "de minimis", or low-value tariff, on China's shipments. Duties for items up to $800 are reduced to 54% instead of 120%. Trump announces he will recommend a 50% tariff for goods coming from the European Union, starting June 1. He warns Apple that it will face a 25% tariff on phones sold in the U.S. if they are manufactured outside the country. May 25: Trump retracts his threat to impose tariffs of 50% on EU imports and agrees to extend the deadline until July 9 May 28: A U.S. Trade Court blocks Trump's tariffs in an sweeping ruling. The court found that Trump overstepped his powers by imposing duties across the board on imports coming from U.S. trading partners. The Trump administration has announced that it will appeal this ruling. May 29: A federal appeals Court temporarily reinstates Trump's most comprehensive tariffs. The court suspends its ruling in order to hear the government's appeal. It also orders that the plaintiffs and administration respond to the court by June 5, and by June 9, respectively. Trump signs an executive order activating the increase in tariffs for imported steel and aluminium to 50%, up from 25%. Trump warns he could soon increase auto tariffs. He argues that this would encourage automakers to accelerate U.S. investment. Trump announces a 20% tariff for many Vietnamese exports. Trans-shipments through Vietnam from other countries will be subject to a 40% tax. Trump said on Truth Social, July 6, that countries who align themselves with the "anti-American policies" BRICS would be charged an extra 10% tariff. Trump on Truth Social: The additional duties announced earlier in the year will be delayed to August 1 as the U.S. completes several trade agreements. In letters to 14 countries, including Japan, South Korea, and Serbia, he said he would introduce tariffs ranging from 25% to 40% on August 1. Trump announced on July 10 that the U.S. would impose a tariff of 35% on Canadian imports next month, and planned to impose tariffs blankets of 15% or 20 % on most other trading partner. Trump threatens a 30% tariff starting August 1 on imports coming from Mexico and Europe (Compiled in Gdansk by Paolo Laudani, Mateusz Rabiega, and Milla Nissi Prussik, Jamie Freed and Lincoln Feast; edited by Matt Scuffham and Milla Nissi Prussik)
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Becton and Waters to merge in $17.5 billion deal
Waters Corp, a lab equipment manufacturer, will merge with Becton, Dickinson and Company’s Biosciences & Diagnostic Solutions division in a $17.5-billion deal, according to the companies. The merger creates a larger company focused on high volume medical testing. The deal announced Monday is structured in a Reverse Morris Trust. This allows a company avoid a large tax bill by spinning out a unit it wants to divest, while merging it simultaneously with another company. The deal's eye-popping value is the combination of the 39.2% shareholding that BD shareholders have in the combined business and the $4 billion cash payment that BD will get at the closing. Becton’s Biosciences and Diagnostic Solutions unit produces products that are used to detect cancer and infectious diseases. The company is looking to divest this unit in order to focus more on its core medical device business. In recent years, funding for microbiology and life sciences research has been cut back, which has affected the performance of BD’s biosciences division. The sale of medical equipment remained strong post-pandemic, due to an increase in demand for outpatient surgeries and other types of surgery. Waters CEO Udit Btra stated that the merger will double Waters' market addressable to $40 billion. It will also enhance recurring revenue streams, and accelerate expansion into areas like bioseparations and bioanalytical characterisation, as well as multiplex diagnostics. Waters' stock fell 5.3% in premarket trading following the announcement. Becton stock was slightly down. Leerink analysts say investors are unlikely to view this deal as attractive near-term, given its higher exposure to microbiology and recent funding cuts. Waters will take on an additional $4 billion of debt as part of this deal. It is expected to be completed in the first quarter 2026. (Reporting and editing by Anil D’Silva, Mrigank Dahniwala, Shrey Biswas, Padmanabhan Ananthan, in Bengaluru)
Copper Slides: LME inventories available jump
Prices of copper fell on Monday as a rise in inventories at London Metal Exchange approved warehouses, a stronger dollar and data showing that China is the top consumer provided some support.
At 1010 GMT, the benchmark copper price on the LME fell 0.5% to $9,917 per metric tonne. Around $9,565, or the 100-day average, there is strong technical support.
The headline copper stock in LME warehouses is only up by 900 tons at 109,625 tonnes
The LME has re-warranted more than 26,000 tonnes of copper due to leave Asia. This means that these volumes can be traded again on the exchange.
Last week, President Donald Trump announced a 50% tariff on copper that will take effect August 1. The cancelled inventories were likely intended for shipment into the United States before import tariffs which the industry expected to be announced in November.
According to logistics sources, the three-week period between the announcement of the deadline and August 1, did not give enough time for metals from Asia to be shipped.
Cash copper contracts are now cheaper than the forward contracts for three months due to the increased availability of the metal on the LME
Elsewhere,
Improve your Chinese loan
Data suggest that stimulus measures boosted the credit demand during U.S.-China's trade truce. Analysts use total social financing as a measure of industrial metals demands. The rise to 8.9% from 8.7% last month was particularly encouraging.
Michael Widmer, an analyst at Bank of America, said that the Chinese stimulus was also a topic of discussion. There's a chance they are looking at overcapacity within certain industries. This could mean that they are trying to support the housing markets."
This week, China's GDP, housing prices and industrial production data will provide clues about the Chinese demand.
A stronger dollar is generally weighing down on industrial metals.
Lead fell 0.7% at $2006, zinc was down 0.8% at $2,718, aluminium was down 0.9% to $2581, tin rose 0.1% to $33,700, and nickel fell 0.1% to $16,170 per ton.
(source: Reuters)