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India and China agree that it is vital to normalise relations between them by avoiding trade restrictions.
India and China need to resolve the friction along their border and pull back troops, as well as avoid "restrictive measures" in order to normalise relations, India's Foreign Minister told his Chinese counterpart on Monday. Subrahmanyam Jishankar, India's Subrahmanyam met Wang Yi during his first visit to China since 2020. A deadly border clash led to a 4-year standoff between their soldiers and damaged relations until then. The thaw started in October When they agreed to step aside. Jaishankar said that the "good progress" in normalising relations between the two countries over the last nine months is due to the resolution of friction on their border. India and China share 3,800 km (2400 miles) of border, which is poorly delineated and has been disputed ever since the 1950s. In 1962, they fought a brutal but short border war. Talks to resolve the dispute have been slow over the years. Last month, Indian Defense Minister Rajnath Singh said to his Chinese counterpart the two countries should work together. "permanent solution" New Delhi is pushing for a final resolution to the border dispute. Jaishankar added that it is important to avoid restrictive trade measures, roadblocks, and other barriers to mutually beneficial collaboration. The Minister was speaking against a backdrop of Beijing's restrictions In recent months, there has been a shortage of rare earth magnets as well as machinery used to manufacture high-tech products. India has the fifth largest rare earth reserves in the world, but its domestic production is still underdeveloped. The Chinese media did not immediately report the discussions between Jaishankar Wang. The official Chinese news agency Xinhua reports that Jaishankar met Chinese Vice-President Han Zheng in the morning. He was in China for the meeting of the foreign ministers from the Shanghai Cooperation Organisation. Han, a Chinese official, told Jaishankar that India and China must continue to advance their practical cooperation, and should respect each other's interests, Xinhua reported.
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What is Patriot missile system? How does it help Ukraine?
Boris Pistorius, German Defence Minister, will discuss with Pete Hegseth, U.S. Secretary for Defence of Defence in Washington the possibility that Germany could pay for American Patriot air defense systems for Ukraine. Donald Trump, the U.S. president, said on Sunday that the U.S. will send an unspecified number of Patriots into Ukraine and the European Union will pay for them. The Ukrainian president Volodymyr Zelenskiy asked for additional defensive capabilities including Patriot missiles and systems to counter daily Russian missile and drone attacks. Here are some important facts about the Patriot What is the Patriot System? The Patriot is a mobile air-to-air missile defense system that was developed by Raytheon Technologies. Its full name is Phased Array Tracking Radar to Intercept on Target. The system has been in use since the 1980s and is considered to be one of the most sophisticated air defence systems available in the U.S. A typical battery consists of radar and control systems as well as a power unit and launchers. The system can intercept cruise missiles or tactical ballistic missiles depending on which interceptor is used. How does the Patriot work? The capabilities of the system vary depending on which interceptor is used. The PAC-2 uses a blast fragmentation warhead which detonates near the target. However, the PAC-3 missiles use a more precise technology that directly hits the target. Although it is unclear what type of Patriot systems Ukraine has received, it is likely to have at least some of its newer PAC-3 CRI interceptors. NATO reported in 2015 that the radar system has a range exceeding 150 km (93 mi). The Patriot missile was originally not designed to intercept hypersonic weapons, and Raytheon is yet to confirm if the Patriot is capable of doing so. However, the U.S. confirmed in May 2023 that Ukraine used the Patriot to shoot down the Russian Kinzhal, which Moscow claims to be hypersonic. Raytheon's website reports that since January 2015 the Patriot has intercepted over 150 ballistic missiles during combat operations. HOW WIDELY is it used? According to its website, Raytheon has delivered more than 240 Patriot Fire Units. According to Raytheon these have been shipped into 19 countries including the U.S.A., Germany Poland, Ukraine Japan, Qatar, Saudi Arabia, and Egypt. Axios reported in January that the U.S. transferred 90 Patriot interceptors to Ukraine from Israel. How much does it cost? According to the Center for Strategic and International Studies, a newly produced Patriot battery costs more than $1 billion. This includes $400 million for a system and $690 for missiles. CSIS estimates that Patriot interceptors cost around $4 million each. Why does Ukraine want more patriots? Kyiv continues to ask its Western allies for additional air defence systems in order to protect civilian infrastructure from Russian drone and missile attacks. Patriots can be an expensive way to take out low-budget drones, even though they are effective in intercepting missiles and planes. Officials in Ukraine say that they are still essential for defending critical targets against Russia's increasing long-range attacks. Russia claims that it views the Patriots as an escalation. Maria Zakharova, a spokeswoman for the Foreign Ministry, said in May that providing more systems to Ukraine could delay peace. (Reporting and editing by Isabel Demetz, Jesus Calero)
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Google-backed consortium to scale up ocean and rock carbon removal
An executive revealed that a coalition of Google, Stripe, and Shopify would spend $1.7m to purchase carbon removal credits for three early-stage firms. This will help the tech giants scale up the nascent market. To meet climate goals by the mid-century, the world will need to remove between 5 and 10 billion tonnes of carbon dioxide per year from the atmosphere. However, most of the technologies available today are of a small scale. Frontier is a coalition that includes Meta, H&M Group JPMorgan Chase, Salesforce and others. The group will spend $1.7million to purchase credits from Karbonetiq in the U.S., Limenet, a company based in Italy, and pHathom, a Canadian firm. Hannah Bebbington is the head of Frontier's deployment. She said that by contracting early to purchase, the companies are better equipped to hire, raise funds and get technologies up and running. She said, "It allows businesses to demonstrate their commercial viability." Frontier's fifth commitment is to support these early-stage firms that aim to store emissions in the ocean, rocks, and industrial waste. Frontier, which began operations in 2022, plans to invest $1 billion between 2022- 2030 in carbon credits. It has already committed to $600 million. Some of that was spent on pre-purchases, and most of it on off-take agreements. It agreed last week to pay $41million for 116,000 tonnes of waste biomass from Arbor. In oceans, it is important to increase the alkalinity to help reduce carbon dioxide emissions. This is done by adding "quicklime", which is made of limestone. Mineralisation technologies are a way to accelerate the natural process of rocks and industrial waste absorbing carbon dioxide. For example, by crushing the material, you can create a greater surface area. Bebbington stated that both technologies have the potential to make a difference because they can be scaled up quickly and inexpensively. "We find them to be very compelling, from a cheap and large-scale perspective." (Reporting and editing by Susan Fenton; Simon Jessop).
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South African auto exports to the U.S. plummet as Trump tariffs bite
The South African auto exports to the United States fell sharply in 2025's first quarter, and dropped more than 80% between April and May, after tariffs imposed on imports by U.S. president Donald Trump affected automakers sales, said industry association naamsa. South Africa's largest trading partner and the main destination for South African vehicles, the United States has long enjoyed duty-free access through the U.S. African Growth and Opportunity Act. naamsa reported that auto exports to the U.S. fell 73% during the first quarter compared with the same period in 2013. This was followed by drops of 80% in March, 85% in April, and 73% in May. The industry group said that the steep decline in exports would be hard to recover from within the next few months. Mikel Mabasa, CEO of naamsa, said: "This isn't just a business issue. It's a social-economic crisis that is brewing." Trump escalated his global trade offensive launched in April this month, announcing new tariffs for more than a dozen nations including South Africa. The country will be charged a 30% tariff starting August 1. The 25% tariff on cars imposed in April has been extended to auto parts since May. South Africa proposed a trade package before Trump's announcement of tariffs in July. It included a duty free quota for South Africa to export 40,000 vehicles annually and duty-free access from local automotive components for U.S. manufacturing. According to naamsa, in 2024 the automotive sector of South Africa will account for 64% all AGOA trade between the U.S. and South Africa, generating export revenues worth 28.6 billion Rand ($1.60 billion). Mabasa stated that the tariffs could threaten thousands of jobs, and economic ruin in communities who rely on this sector. For example, East London is a coastal town where the auto industry plays a central role to its economy. Mabasa warned that if we don't retain export markets such as the U.S. we could turn vibrant industrial hubs like Detroit into ghost towns. This would have ripple effects throughout the entire automotive supply chain from component manufacturers to logistic providers. Mabasa said that diversifying exports is important, but it cannot be done overnight. He noted that international competitors are already re-directing their exports to markets traditionally served South Africa. Mabasa stated that the mounting pressure on automakers in South Africa exporting to U.S. will force them to absorb rising costs and scale back production as well as reconsider future investments.
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Thames Water bans hosepipes as England suffers from a historic drought
Thames Water in Britain announced on Monday a temporary "hosepipe" ban, to reduce water consumption across southern England. This follows the driest, warmest spring for over a century. Thames Water, Britain’s largest water supplier, announced that the ban will take effect on 22 July, affecting households in several counties, including Oxfordshire. Gloucestershire and Berkshire. Customers are forbidden from using hosepipes to do activities like washing cars, watering allotments or gardens, filling swimming or paddling pools, or cleaning windows. In England, other water providers have also implemented temporary bans in this month. Both Yorkshire Water and South East Water announced their restrictions last week. Nevil Muncaster is the Director of Strategic Water Resources at Thames Water. We do not expect the situation to improve anytime soon, given the continuing warm and dry weather. Last month, the government announced that it would increase efforts to protect the water resources in England ahead of summer. Reservoirs are currently only 77% full - well below the seasonal norm of 93%. Scientists claim climate change makes droughts and dry summers more common. (Reporting and editing by Sarah Young; Catarina demony)
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A trade group warns that India's new rule on copper cathode could lead to supply shortages.
The Bombay Metal Exchange warned that India's quality-control order on copper cathodes will likely reduce domestic availability because of "unnecessary and costly compliance burdens" placed on foreign suppliers. India, which is the second largest importer of refined cobalt in the world, implemented quality controls for copper cathode in December. All suppliers, both domestic and foreign, were required to check all substandard products within the country. Bombay Metal Exchange said that quality control restrictions have resulted in a drop in imports. The government has denied this claim. The BME stated that "the downstream sector is facing real and immediate shortages due to the inability or unwillingness of domestic licensees to supply the market, and the unreliability of foreign alternatives." The Indian Federal Ministry of Mines has not responded to an email seeking a comment. For suppliers to meet quality control standards, they must obtain a license from the Bureau of Indian Standards (BIS), which is responsible for quality control in India. In India, trade associations such as the BME and Bombay Non-Ferrous Metals Association have challenged the quality controls. The government has defended its quality control order at court against allegations that it will lead to shortages of supplies and create a monopoly in the supply. BME reported that all five domestic licensed producers use copper cathodes exclusively for their own consumption. The BME stated in a press release that four foreign licensees do not provide copper cathodes, but only offer ingots and semi-finished products. The Indian government announced last month that seven of the ten foreign suppliers who had been certified under the new regulations were from Japan, while two came from Malaysia and one was from Austria. About two-thirds (about $2 billion) of India's refined cobalt imports come from Japan, followed by Tanzania and Mozambique. BME says there is growing evidence that Japanese licensees are withdrawing from the Indian market because of the burdensome and costly compliance requirements. Marubeni Japanese Trading House, which was involved with the licensing process of six Japanese smelters said that "no particular issues have arisen regarding supply to India." India has identified copper as one of 30 critical minerals by 2023. The domestic demand is expected to double in 2030. Hindalco Industries, and the state-owned Hindustan Copper are two of the major domestic suppliers.
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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 traders, however, are interested in inventories which were canceled or marked for delivery and then re-warranted. 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 To $45 per ton, which is the highest price since April 23. 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.
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ArcelorMittal South Africa says little progress made to avert plant closure
ArcelorMittal South Africa said that discussions with the South African Government have not yet yielded much progress in preventing the closure of its loss-making long-steel operations. In November 2023, the South African division of ArcelorMittal SA, world's number two steelmaker, announced that it would close two plants. It cited weak domestic demand and high electricity rates, poor logistics, and competition from mini-mills for recycling scrap metal and imports from China. ArcelorMittal South Africa stated in an update on trading that "regrettably" there has only been limited progress in resolving major structural obstacles. The company said that the closure of the plant could not be delayed beyond September 30, unless a quick solution was found. Parks Tau, South Africa's Trade and Industry Minister, told lawmakers that on July 4, the government is in "firefighting" mode as it attempts to prevent the closure of ArcelorMittal operations in KwaZulu Natal near Johannesburg and in KwaZulu Natal. The company and government have tried to save 3,500 jobs that were directly threatened by the closure of these plants. These plants supply rails, roads, and bars for construction, mining, manufacturing, and automotive industries. The state-owned Industrial Development Corporation, which owns the steel company, injected cash of 1.683 billion Rand ($94.22 millions) to the steel firm in March. The steelmaker said that imports had flooded the market, accounting for more than 35%. Meanwhile, freight rail service has "deteriorated to its lowest level ever," resulting in a significantly increased operating risk. ArcelorMittal South Africa is expecting to report a headline per share loss between 0.89 and 0.99 rands ($0.0498 to $0.0554) in the six-month period ending June 30. This will be a reduction from the 1 rand loss per share reported during the same time last year. The company reported that sales volumes had declined by 10% in the first six months of 2025, compared with last year. ArcelorMittal South Africa is scheduled to release its financial results for the first half of the year on July 31.
Gold reaches three-week high; silver reaches over 13-year-high
Gold reached a three-week-high on Monday, driven by demand for safe-haven assets after U.S. president Donald Trump threatened to impose tariffs on Europe and Mexico. Silver also hit a record high of more than 13 years.
As of 0829 GMT spot gold rose 0.4% to $3,367.89 an ounce after reaching its highest level since the June 23 session earlier in that session.
U.S. Gold Futures increased 0.4% to $3378.20.
Trump announced on Saturday that he will impose a 30 percent tariff on the majority of imports from Mexico and the EU as of August 1. He also issued similar warnings to other countries.
The European Union and Mexico both described the tariffs, as unfair and disruptive. However, the EU announced that it would suspend its countermeasures against U.S. Tariffs until the beginning of August and will continue to push for a negotiated solution.
"Trump's tariffs threatens are supporting demand for safe-haven assets and gold is the main beneficiary," said UBS commodity analysts Giovanni Staunovo.
The Federal Reserve will be able to determine the interest rate path based on the U.S. producer and consumer price indexes this week.
Investors expect a 50 basis point Fed rate cut by the end this year. This will begin in October. In a low rate environment, gold tends to flourish.
Silver spot rose 1.5% to $38.89 an ounce, the highest since September 2011.
Staunovo stated that the silver rally is driven by speculative flow, as the metal has moved above technical resistance levels.
In a note ANZ said that if silver breaks the range of $35-$37, it could trigger new technical purchases and push prices up to $40.
ANZ stated that if this resistance is not overcome, it may lead to a fallback with an initial support of around $35.
Platinum remained at $1,398.75. Palladium rose 1.2% to $1.229.44 and reached its highest level since October 2024.
(source: Reuters)