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US Wireless carriers launch joint venture to address rural "dead zones"
Verizon, AT&T, and?T-Mobile announced on Thursday they had agreed in principle to form a joint venture to address coverage gaps that have existed for years - especially in rural areas - by using satellite-based technology. The plan, according to the largest wireless companies in the United States, aims to eliminate nearly all dead zones that lack mobile service. The plan aims to improve network performance and ensure redundant connectivity in natural disasters using "direct-to-device" satellite technology. The Federal Communications Commission has approved EchoStar’s $40 billion sale to SpaceX and AT&T of wireless spectrum. EchoStar will sell?65 Megahertz to SpaceX at a cost of $17 billion in order to enhance SpaceX’s Starlink’s next-generation device-to device offering. The joint venture will invest in satellite-based direct-to device technologies to fill coverage gaps. Analysts also believe that the joint venture could be defensive, as some are concerned SpaceX will eventually compete directly with U.S. wireless providers. FCC Chairman Brendan Carr said in an interview that the sale of $40 billion worth of spectrum provides Starlink with a clear path to "enter direct into the cell market." Elon Musk, CEO of SpaceX, has stated that the company has deployed over 650 Starlink satellites to support a new direct-to device business. Musk said that the company's goal was to "deliver complete cellular coverage on Earth." Carr said Starlink would be able to deal with dead zones on its own, or in partnership traditional carriers. SpaceX will gain 'exclusive-use spectrum to develop a Starlink service that connects devices or directly to cell phones, among other services. The FCC stated that AT&T’s low-band spectrum would expand coverage throughout the United States, particularly in rural and underserved regions. Carr said, "We are fundamentally reshaping wireless industry with this approval." "As regulators, our job is to give the market a fair chance at settling itself." Direct to cell is not a "winner", but neither are we putting it aside and declaring it as a "loser". The FCC has also granted SpaceX waivers to address the convergence of satellite and wireless broadband. The FCC's announcement allows SpaceX to use their new spectrum in a flexible manner for hybrid, terrestrial and space-based network architectures. The FCC has ordered EchoStar to set up an escrow fund of $2.4 billion, which would cover any amount that EchoStar may owe as a result of disputes over the work done under licenses. (Reporting and editing by Sharon Singleton, Nick Zieminski and David Shepardson)
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Investors focus on Middle East and Trump-Xi Meeting as gold prices ease
?Gold prices dipped on Thursday as investors focused mainly?on a?recent development in the Middle East conflict and signals from U.S. president Donald Trump's recent meeting with Chinese president Xi Jinping. At 9:42 am EDT (1342 GMT), spot gold was down by 0.4% to $4,668.34 an ounce. U.S. Gold Futures for June Delivery fell by 0.7% to $4672.70. The dollar?U.S. The dollar rose 0.1% and made metals priced in greenbacks more expensive to holders of other currencies. Oil prices fell after Iran's official media reported that 30 vessels had recently crossed the Strait of?Hormuz. This report briefly boosted gold prices. Bart Melek is the global head of commodity strategy for TD Securities. He said that if this Middle East conflict doesn't end, there is a risk of a "significant downturn" in gold. He said that if inventories and supplies of energy products are reduced, prices could rise dramatically, resulting in an increase in inflation. According to CME Group’s FedWatch tool the U.S. rate cuts are largely priced in at this point in the year due to an 'energy-driven increase in U.S. consumer and producer prices in April. Gold is considered to be a hedge against rising inflation. However, as interest rates rise, the metal tends to lose its appeal. The data released on Thursday revealed that?U.S. Retail?sales increased in April but some of this increase was due to higher prices. Xi reassured Trump on Thursday that the trade talks are progressing, but warned that disagreements over Taiwan could lead to a 'dangerous path' and even conflict. Taiwan was not mentioned in the U.S. summary. Spot silver dropped 3.8% to $84.00 per ounce. Platinum fell 3.4% at $2,065.50 and palladium fell 3.7% to $1,443.74. (Reporting by Ishaan Arora in Bengaluru; editing by Paul Simao)
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Iraq requested financial assistance from IMF in response to the Iran war, a source said
A source close to the IMF confirmed on Thursday that Iraqi officials had approached the International Monetary Fund in order to?secure financial assistance due to the conflict in the Middle East. Sources said that initial discussions took place during the spring meetings in Washington of the IMF and World Bank, and are continuing about how much funding Iraq will need and the structure of any loan. The Middle East has been rocked by the war that began February 28 with a massive U.S. and Israeli bombing campaign on Iran. This led to the closure of the Strait of Hormuz. Iraq was hard-hit by the war. Its oil exports, which make up nearly all of its government revenue, were cut off due to the closing of the crucial waterway that?previously transported about one-fifth the world's crude oils. The?IMF and the Iraqi Embassy did not immediately comment. Iraq's economy is heavily dependent on oil exports. It has the?fifth-largest?petroleum reserve in the world. Iraq's latest financial?deal was a $3.8 billion standby agreement that expired in July 2019. Of this amount, $1.49billion was drawn according to the IMF website. Iraq is owed $2.39 billion by the global lender, according to the website. This includes $891 million that was provided through a rapid funding instrument. (Reporting and editing by Louise Heavens, Chizu Nomiyama, and Andrea Shalal)
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Venezuelan bonds rise after debt restructuring by government
Venezuela's bonds rose on Thursday, after the country began a restructuration exercise that is expected to be one of the largest and most complex sovereign debt restructuring exercises undertaken. Venezuelan government announced that it has appointed U.S. consulting firm Centerview Partners to rework what is estimated at hundreds of billions dollars in sovereign and state-owned debt. The dollar-denominated bonds of the country, which have been in default for years but still trade on financial markets, reached their highest level since more than a decade. Data from Tradeweb showed that the bonds of Petroleos de Venezuela, a state oil company, were at a decade high, at 40 to 50 cents. Jean-Charles 'Sambor is the head of EM Debt at TT International, London. He viewed it as a signal that a restructured debt was now a top priority for both Caracas, and the White House. He added that "the recovery rate will high" because we are dealing with a country whose oil production and debt sustainability has improved sharply. COMPREHENSIVE & ORDERLY Venezuela, the South American nation with the largest oil reserves in the world, and Petroleos de Venezuela (the state oil company) owe between $150 and $170 billion dollars of debt and interest. This burden must be reduced for the economy to remain viable. The government announced late Wednesday that it aimed for a "comprehensive" and "orderly" overhaul of the debt burdens, which would include both sovereign debt as well as that of PDVSA. Venezuela defaulted on its debts due to U.S. sanction pressure in 2017. However, its bonds have steadily increased since U.S. president Donald Trump returned the White House at the beginning of last year. Since the U.S. ousted President Maduro, in January, momentum has picked up and Washington's relations with acting Venezuelan president Delcy Rodrguez have become closer. In a client note, JPMorgan analyst Benjamin?Ramsey stated that the goal is to move "expeditiously" with financial advisers. "We remain MW (marketweight), Venezuela in our portfolio model, pending an?improved assessment of a framework for debt sustainability." Ramsey said that although the process was questioned, it is worth noting that it began before the International Monetary Fund provided its assessment of Venezuela's economic prospects or debt sustainability metrics.
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Markets focus on Trump-Xi Meeting
?Gold was largely stable?on Friday, as investors focused mainly on a meeting between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. They also digested a rise in U.S. prices due to increased energy costs associated with the Iran War. As of 1112 GMT, spot gold was up 0.2% to $4,696.36 an ounce. U.S. Gold Futures for June Delivery fell 0.1% to $4,703.70. China's Xi said that the trade talks are?making good progress? at the beginning of a two day summit on Thursday, but that a disagreement over Taiwan might?damage relationships and even lead conflict? Gold is still hovering at $4,700 while markets digest the latest U.S. inflation figures. It is very evident that we are now in a phase of consolidation," said Swissquote analyst Carlo Alberto De Casa. Data on Wednesday revealed that U.S. Producer prices had posted their largest increase in four-years in April. This is the latest indication of an accelerating inflation. On Tuesday, data showed that the annual U.S. consumer inflation had posted its biggest gain in three year. According to CME Group’s FedWatch tool, traders have priced in a large amount of interest rate increases this year. This is due to the rising cost of energy. The?U.S. The Senate has approved Kevin Warsh to be the chair of the Federal reserve. Gold is considered to be a hedge against rising inflation. However, as interest rates rise, the metal becomes less attractive. HSBC has raised its forecasts for silver prices to $75 an ounce by '2026. The bank cited the weaker U.S. -dollar. However, the bank believes that there is only limited room 'to the upside as silver remains too overvalued. Silver spot fell by 1.3%, to $86.86 an ounce. Platinum fell by 1.3%, to $2,110.70. Palladium fell 2.2%, to $1,467.03. (Reporting and editing by Barbara Lewis in Bengaluru, Noel John)
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India's JSW Steel reports a two-fold increase in quarterly profits on the back of price recovery
India's JSW Steel announced a more than two-fold increase in its adjusted quarterly profit on Thursday. A rebound in steel prices, and a healthy demand, helped to offset the?impact of an?increase?in costs resulting from the Iran War. The demand for steel usually increases in the third quarter of the year as construction picks up. Analysts said that New Delhi's tariffs on certain steel products imported from China helped to raise?steel after two consecutive quarters of declines. The lowering of U.S.?tariffs was also a factor in the price increase. JSW Steel said that its sales volume increased by 6% in the third quarter due to a 10.4% increase in steel consumption. Mumbai's steelmaker reported a 14.2% increase in revenue?from operation to 511.8 billion rupees (5.34 billion dollars) for the three-month period ended March 31. This was higher than analysts' expectations of 496.6 billion rupees. The company's net profit was 163.7 billion rupees. This was boosted by an unforeseen gain from the sale of Bhushan Power and Steel's steel business. JSW Steel said that its operating EBITDA margins increased to 16.87%, from 14.23%. This was due to higher sales realization and higher coking coal costs, which were partially offset by the higher EBITDA margins. The Iran War and the Blockade of Strait of Hormuz has slashed the LNG?supplies. This has forced a widespread switch to coal, which in turn, has pushed up the price of coking coal. The total expenditures of JSW Steel increased by 8.9%, to 468.62 Billion Rupees. $1 = 95.7625 Indian Rupees (Reporting and editing by Eileen Soreng, Harikrishnan Nair).
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Bessent of US Treasury expects large Boeing orders during China visit
Scott Bessent, U.S. Treasury secretary, said on Thursday that he was expecting an announcement regarding large Chinese orders for Boeing aircraft when President Donald Trump visits Beijing. Washington wants to expand its exports to China. Bessent told?CNBC earlier in the day that they would be discussing other purchases including energy and agricultural products, as well non-strategic or non-sensitive areas where China could invest in America. Bessent, after meeting with Chinese counterparts, told CNBC’s “Squawk box” program that fireworks were one of the?goods?the U.S. wouldn't seek to reshore. Bessent stated that U.S. officials and Chinese officials had discussed the formation of a "Board of Trade" to govern trade between these two world-leading economies and a separate Board of Investment, which would be responsible for investments in non-sensitive areas. He said, "I don't know where the $1 trillion number came from." He said that the new investment board will review any Chinese plans in order to make sure they do not fall under jurisdiction of the Committee on foreign Investment?in the United States, which he chairs. Bessent explained that the goal is to ensure that these investments are not referred to CFIUS. This would allow them to be pre-screened to ensure that they don't fall into a sensitive or strategic area. Trump said to Chinese President Xi Jinping that he wants to open China up and rebalance?the trade relationship. Bessent stated that "we're focused on getting the balance right." "That's our goal, and it can be achieved in two ways: either we receive fewer imports out of China or we sell more products to China. We're working to balance this." Reporting by Andrea Shalal; editing by Doina chiacu and Kirsten Donovan.
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Bank of Spain warns of the potential for higher rents if mortgage lending is restricted
On Thursday, the Bank of Spain said that it is carefully calibrating any potential restrictions on mortgage lending to improve the resilience of both households and banks while not increasing rent prices. The 'authority' is developing a framework which would enable it to activate macroprudential limitations on lending standards when necessary to prevent risky loans. It estimated in its semi-annual report on financial stability that these measures will shift a part of the housing from ownership to rental, leading to likely lower house prices. It warned that the measures could have a knock-on effect on other variables, such as the rental price, and undermine the effectiveness of the plan. It said that any'such measures' should be calibrated carefully. Rents are rising at a rate well above inflation, with 10% increases in 2024, and 5% increases in 2025. This is in a housing market that has an estimated deficit of 700,000 houses. In 2025, home prices will rise at a rate of 9.7% per year, but they are still 14.7% lower than the peak in 2007, when Spain's bubble burst and forced the banks to be bailed out. Financial Stability Director Daniel Perez Cid said at a press briefing that the institution has not yet detected signs of a real estate bubble, such as excessive growth in credit. The stock of mortgage loans grew by a staggering 3.7 percent in the fourth quarter 2025, marking the fifth consecutive quarter of growth. However, it is still far below the levels of 2000-2008. In March, the number of new mortgage loans in Spain increased by 9.6% compared to last year. As of March, Spanish lenders offered the second lowest mortgage rates in the Eurozone. They averaged?2,75%. However, their?approaches differ. Santander's new mortgage lending increased by 44% in Spain in the first quarter compared to the previous year, while Bankinter decreased it by 40%. (Reporting and editing by Andrei Khalip, with Jesus Aguado)
Botswana’s ODC announces first contract diamond sales in November
Mmetla Msire, the managing director of Botswana’s Okavango Diamond Company, said that it will begin selling diamonds next month to contract buyers, diversifying its sales channels as part of the new government deal with De Beers.
ODC's share in Debswana, the 50/50 joint venture between the government and De Beers, was increased from 25% to 30% in the new 10-year agreement signed in February. Its share will reach 40% by the end of the deal.
The clause that prevented ODC from competing directly with De Beers in contract sales has been removed.
Masire said at a mining conference that "we are targeting our initial sales through this channel by November. Our first two sales will be pilot sales, before we move to full-scale on our third",
STRUGGLING DIAMOND MARKET A PROBLEM FOR BOTSWANA
Masire said in May that ODC planned to sell around 40% of its supplies through contract sales. The balance would be sold via auctions, strategic partnerships and Botswana based companies.
The global diamond industry is experiencing a prolonged downturn. Demand is declining due to a glut of supply, and the popularity of lab-grown stones has weighed on rough diamond prices.
ODC temporarily stopped its rough stone sales in 2023 as part of a industry-wide effort to reduce the glut. The company held a gem auction on 25 September but decided to keep its gems citing "conditions which could have had a significant impact on the marketplace".
According to Masire's estimates, ODC's revenue in 2024 will be about 60% less than the previous year because of the recession, but it is seeing some stabilization in the market. The company's last three auctions have seen small margins that are up from double-digit losses last year.
Diamonds account for 30% of Botswana's revenues, and 75% of the country's foreign exchange earnings. The current market slump has seen the economy contract by 3 % in 2024. IMF predicts a further 1 % contraction this year. (Reporting by Brian Benza. (Editing by Nelson Banya, Mark Potter and Mark Potter).
(source: Reuters)