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Australia sues China's rare earths investors
The Australian national treasurer announced on Thursday that it is suing an associated Chinese company and former associate for a violation of foreign investment laws related to rare earths mining firm Northern Minerals. He added that this was the first such case. Indian Ocean International Shipping and Service Company, one of five foreign investors who had ties to China, was ordered by Treasurer Jim Chalmers in June 2011 to divest its shares for national interest. Chalmers stated in a press release that he filed a lawsuit at the Federal Court, seeking penalties, declarations, and costs. Chalmers stated that foreign investors are required to adhere to Australian law. Chalmers said that "we are doing everything we can to protect our national interest and integrity of the foreign investment framework." The statement did not provide details about the current stakes. It stated that this was the first time a Treasurer had brought a case before the Federal Court over an alleged violation of foreign investment laws. The statement named Indian Ocean but did not identify the former associate. Indian Ocean International Shipping and Service Company was not immediately available for comment. Australia is building a rare-earths supply chain in order to reduce China's dominance of the elements that are used to make products such as smartphones, wind turbines, missiles, radar systems and radar systems. Northern Minerals became the focal point of the contest when Australia prevented Singapore-based Yuxiao Fund to double its stake in the firm to almost 20% by 2023. Yuxiao controlled by Chinese businessman Wu Tao was ordered to sell shares of Northern Minerals worth 10.37% within three months in 2024. This included Black Stone Resources in the British Virgin Islands and Indian Ocean International Shipping and Service Company in the United Arab Emirates. (Reporting and editing by Barbara Lewis in Sydney)
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Palantir and AI software partners for nuclear construction
Palantir Technologies announced on Thursday that it had teamed up with a company that specializes in nuclear deployment to create a software-driven artificial intelligence system for the construction and operation of nuclear reactors. Investors and companies are re-engaging in nuclear energy, which is seen as a more reliable and cleaner fuel source than solar or wind energy. Palantir and Nuclear Company are creating the Nuclear Operating System (NOS) together. This will simplify construction and allow the firm to build faster and cheaper. The agreement follows U.S. president Donald Trump's executive order that sought to boost U.S. production of nuclear energy amid an increase in demand for data centers and AI. The nuclear regulatory commission of the United States was directed by an order signed in May to reduce regulations and expedite new licenses. According to a Palantir spokeswoman, Kentucky-based Nuclear Company is paying the data analytics firm around $100 million for five years in order to develop the platform. Trump's tax and spending bill is expected to also benefit the industry, as it has rolled back many green energy subsidies while preserving tax credits for nuclear power. The U.S. is expected to hit record-high power consumption in 2025 or 2026, after nearly two decades of stagnation. This will be due to the power-hungry crypto mining and AI data centers that plug into the grid. Reporting by Juby Dastin and Jeffrey Babu from Mexico City; editing by Maju Sam)
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What can the UN development conference in Seville achieve?
On Monday, global leaders will launch the once-a decade Conference on Financing for Development in Seville, Spain. The conference aims to improve world aid and financial infrastructure. On the agenda are ambitious reforms ranging from global taxation to climate-focused financing. What will the event be, who will be there, and what is it intended to achieve? What is it? The fourth conference will bring together leaders in the fields of finance, politics and trade to develop a coherent strategy to address global issues ranging from debt to aid. Leaders will adopt a 38 page document, dubbed "Seville Commitment", which had been painstakingly agreed and negotiated before the event. The document will serve as a blueprint to finance development in the next decade. However, it is not legally binding. The first "Monterrey Consensus", which was adopted by the FFD in 2002, set targets for rich countries in order to spend 0.7% on their gross national product (GNP) on official development aid. It also supported the Heavily Indebted Poor Country Initiative that led to billions of dollars in debt relief. The previous FFD in Addis Ababa, 2015, established the 17 Sustainable Development Goals that have guided multilateral financing for the last decade. It also focused on taxation and reducing illicit financial flows. The backdrop for this year is particularly challenging with the widespread cuts to aid across the rich world and Donald Trump's skepticism about climate change. What are the objectives for this year? The Seville Commitment is focused on reforms that will help poor countries adapt to climate crises. These include debt swaps, clauses for natural disasters to pause debt, and the exploration of global solidarity levies which could tax highly-polluting activities or super-rich people to finance sustainable development. The plan also focuses on progress in improving debt restructuring and innovative ways to increase funding, including the efforts of multilateral development banks to leverage special draw rights. The leaders will also launch the Seville Platform for Action which would form alliances in order to accelerate concrete progress towards the goals. Who will be there? Amina Mohammed, UN Deputy Secretary General, said that over 70 heads of government and state would be attending. Among them are French President Emmanuel Macron and South African President Cyril Ramaphosa – this year’s G20 Chair – as well as sustainable finance rock stars like Barbados Prime Minister Mia Mottley. Ajay Bana, President of the World Bank, is expected to attend, as are other development bank heads, Gates Foundation, and other campaign groups. The United States is notable for its absence, having withdrawn during the negotiations, after trying, but failing, to remove climate, sustainability, and gender equality from Seville Commitment. WHY COULD THIS HAVE AN IMPACT? The event could be hampered by the U.S.'s absence and the continued disagreement over certain other issues such as debt. Trump's opposition towards goals like global tax rules changes could make it harder to achieve success in this area. Disagreements between African leaders, and lending nations such as China over a debt treaty also impede progress. Sources said that the event would be more successful if the U.S. participants did not try to dilute the objectives. There is also a consensus among the attendees of the conference on the need for urgent action, such as funding climate adaptation. What is the Backdrop? The U.N. estimates the global funding gap for sustainable development to be a staggering $4 trillion. Multilateral lenders have worked to increase funding, but they've only been able mobilize hundreds of billions in cash so far. In the meantime, the average cost of interest for developing countries in relation to their tax revenues has nearly doubled from 2014. China's lending has become net negative, as repayments of loans are due. More than half of Africans live in countries where debt is more expensive than health care.
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Speculators and a weak dollar push copper prices to a three-month high
The copper price rose to its highest level in almost three months on Friday, driven by the weakening dollar, supply concerns and speculators buying after technical levels had been broken. The price of three-month copper at the London Metal Exchange rose 1.6%, to $9,867 per metric ton, by 1000 GMT. This was its highest since March 28. Alastair M. Munro is a senior metals analyst at Marex. He said, "What's key for us is the dollar weakness, and that it is trending downward, which is supportive of our space." The dollar index fell to its lowest level since early 2022, as fears about the future independence and soundness of monetary policy in the United States undermined confidence. The dollar is weaker, making commodities priced in U.S. dollars less expensive for buyers of other currencies. The LME Cash Copper Contract Premium for the Three-Month The price of a ton rose to $200 from $101 on Tuesday, but was down from $280 a day earlier. This is the highest it has been since November 2021. While traders expected deliveries of copper to LME warehouses would ease the tight situation, these have yet to materialise. Munro stated that the market was still short of offers for July. He noted that the Chinese were buying copper in large quantities. Long positions and open interest on the Shanghai Futures Exchange are also increasing. The ShFE copper contract most traded rose 0.6%, to 11 022,74 yuan per tonne, its highest level since June 11. A trader stated that the LME copper price has been below $9,800 for several months. The break above this level on Thursday resulted in automatic buy orders. LME copper is up 22% from its low of $8,105 (November 2023) in April. U.S. Comex Copper Futures rose 2.7% to $5.05 per lb. This brings the premium of Comex to LME copper up to $1,277 per ton. It is now at its highest level since April 28. The expectation of U.S. steel tariffs triggering a surge in metal into Comex warehouses is what has caused the higher copper prices. Other metals include LME aluminium, which rose by 0.5% to 2,575 per ton. Lead gained 0.6%, nickel increased 0.8%, zinc rose 1.4%, and tin climbed 0.6%. (Reporting and editing by Frances Kerry. $1 = 7.1670 Chinese Yuan)
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India asks the court to reject challenge against copper import curbs
A legal document published on Thursday shows that the Indian government rejected claims by trade groups that its decision to introduce quality control restrictions on copper cathode imported would result in a monopoly. This is because 10 foreign suppliers had already been certified. India, which is the second largest importer of refined cobalt in the world, defends its quality control measures against allegations that they would create supply shortages and a monopoly for three domestic suppliers. The government responded in a 160-page document to petitions from the Bombay Metal Exchange and the Bombay Non-Ferrous Metals Association that their concerns about supply shortages are "misconceived" and "unfounded". The Indian Ministry of Mines asked that the legal challenge by the trade associations be rejected. Emails sent to the Bombay Metal Exchange and the Bombay Non-Ferrous Metals Association, as well as the Federal Ministry of Mines, were not immediately answered. The response seen by adds the quality control order is a regulatory measure that aims to protect consumer interests. It applies to all entities, whether domestic or foreign. Foreign suppliers are not prohibited. "The regulation is intended to improve product safety and reliability, not to restrict competition," the statement added. India has identified copper as one of the 30 critical minerals it will need by 2023. The demand for copper in India is expected to double within the next decade. Hindalco Industries, Vedanta and Adani dominate the domestic supply, followed by Hindustan Copper, a state-owned company, and Hindustan Copper. Since 2018, imports have risen in the country following the closure of Vedanta’s Sterlite Copper Smelter. About two-thirds (about $2 billion) of India's refined cobalt imports come from Japan, followed by Tanzania and Mozambique. The Indian government responded that seven of the ten foreign suppliers who were certified under the new rules are from Japan, while two came from Malaysia, and one was from Austria. Sandeep Jain, the president of Bombay Metal Exchange, said last month that his trade association was "compelled" to seek judicial assistance because the government had not delayed the implementation quality control orders and this measure led to shortages. (Reporting and editing by Arpan Chaturvedi)
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Reliance and financials are leading the rise in Indian shares
Indian stocks rose for the third consecutive session on Thursday. Gains were driven by shares of Reliance Industries, and sectors like financials and metals. The Nifty 50 gained 1.21%, reaching 25,549; the BSE Sensex rose 1.21%, to 83 755.87. This followed a 1% gain in the two previous sessions, which led to nine-month highs. The two major indexes are now about 3% lower than their previous highs, which were reached in September 2024. The Nifty 50 has risen by about 8% this year and the Sensex is up by 7%. On the day, 11 of the 13 sectors that are considered major rose. Financials were the main drivers of the market on Thursday. Private lenders HDFC Bank, ICICI Bank, and HSBC all rose by 2% or 1% respectively. The Nifty Financial Services Index was up 1.5%. Analysts said that the prospect of lower funding costs as well as a robust growth in domestic GDP are helping to boost sentiment towards bank stocks. The buzz surrounding the IPO of HDFC Bank subsidiary HDB Financial Services is also supporting the shares. Reliance Industries gained about 2% and extended its two-day gain to 3%, after analysts predicted robust earnings growth for the June quarter. Vaishali Parekh is the vice president of technical analysis at PL Capital. She said that as geopolitical cloud clearing continues, the market tone has improved steadily. Metal index added 2.3%, helped by a weaker U.S. dollar, which makes the greenback-denominated assets more affordable to holders of other currencies. Dollar fell after U.S. president Donald Trump rattled the markets with an attack against the U.S. Federal Reserve Chair that revived concerns over the independence of the central bank. Small-caps, mid-caps, and large-caps all rose as well, with gains of 0.4% and 0.6% respectively. On Thursday, other major Asian and European markets rose as well. Jefferies has reaffirmed Bajaj Finance and Shriram Finance as the top non-bank lenders.
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Canadian Carbon Tech Startup attracts US Interest Post-Trump
After Donald Trump was elected, a Canadian startup has reported an increase in inquiries from U.S. firms. Deep Sky, a startup, recently finished construction of its "Alpha Direct Air Capture" test ground, in Alberta. It will allow 10 companies to fine-tune and deploy technologies as they work towards developing commercial-scale plants. Deep Sky CEO Alex Petre stated that due to the Trump administration’s decreased focus on climate and uncertainty regarding the future funding support of DAC technology in the U.S., Deep Sky has received more inquiries from U.S. carbon tech developers than they expected. She said that the changes south of border has actually put Canada in the spotlight. Deep Sky, which was awarded $40 million by Bill Gates Breakthrough Energy last year, has signed agreements with eight companies from the U.S.A., Canada and the U.K. to operate on the site. The carbon removal process at the testing site, which will capture approximately 3,000 tonnes CO2 annually, is set to begin this summer. DAC differs from more established technologies for carbon capture and storage. DAC is different from traditional carbon capture technology, which filters out CO2 at industrial smokestacks and stores it before it reaches our atmosphere. The technology is expensive and difficult to scale. Iceland's largest DAC plant, which is the largest in the world, can only capture 36,000 tonnes CO2 per year. According to the UN Intergovernmental Panel on Climate Change, stabilizing the climate of the planet could require removing DAC at a scale of millions or billions of tonnes per year by 2050. The U.S. is facing a broader backlash from politicians against funding public technology for climate change. The U.S. Department of Energy, under former president Joe Biden pledged over $1 billion of funding support to two proposed DAC Hubs in Texas and Louisiana. Sources told us in March that the Trump administration could eliminate the grant funding. Petre stated that Deep Sky plans to launch a commercial DAC project once the Alberta test hub has been fully operational. She expressed her encouragement at the new commitment of Prime Minister Mark Carney to identify and accelerate infrastructure projects that are in Canada's national interest, as part of an effort to make Canada a superpower for conventional and clean energy. Petre stated, "There are many interesting developments that seem to be taking place (in Canada), which I believe will help us."
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The scorching Club World Championship raises concern for 2026
The soaring temperatures of this year's Club World Cup has raised concerns about the afternoon kickoff time at the 2026 World Cup. This is because the expanded tournament poses challenges to the organisers. In a heatwave that swept the United States, Borussia Dortmund's players faced South Korea's Ulsan on Wednesday in Cincinnati. The temperatures were over 90 degrees Fahrenheit (32.22degC), with kickoff scheduled for 3 p.m. The players took advantage of FIFA’s cooling breaks every half-hour at matches this week, while Chelsea manager Enzo Maresca told reporters that it was "impossible to organize regular training sessions" in Philadelphia’s sweltering afternoons. The global players' union FIFPRO stated that the current conditions should serve as "a wake-up" call. A FIFPRO representative said: "As the climate changes, extreme weather conditions including dangerous heat are becoming an urgent issue for all in the football industry. The risk posed by kickoffs at very high temperatures is growing and real." FIFPRO called on global soccer bodies to reconsider kick-off times in order to address the heat conditions. FIFA was praised for its flexibility when it comes to adding cooling breaks during games. FIFPRO said that there was still much more to be done in order to prioritize player safety and health. "Current laws and protocols of the game need urgent revision. This is a task that the entire football industry should take on." FIFA did not respond immediately to a comment request. The match times for the co-hosted 2026 World Cup by the United States of America, Mexico and Canada have not yet been announced. However, organisers could face difficulties if the hot weather returns. Those who attended the 1994 tournament, when the United States was the host country, will not be surprised by the heat issues. The Los Angeles Times reported that a week after the tournament began, high temperatures were making fans steamy. In Pasadena where temperatures reached 100 degrees Fahrenheit, more than 90,000 people gathered to watch the final. This was the first time a World Cup Final was played in daylight. 'IT'S COMPLICATED' Due to the expansion of the tournament from 32 teams to 48, it may not be possible to avoid afternoon kickoffs to accommodate scheduling and lucrative European broadcasting markets. Madeleine Orr is an author and sports ecologist. She said that the big broadcasters invest a lot of money in their schedules, so changing it to accommodate heat would mean they wouldn't make as much revenue from advertising. Orr, who co-authored a study earlier this year, said that cities with the highest heat risks in 2026, such as Miami, Monterrey and Philadelphia, Kansas City, Boston, New York, should avoid kickoffs during the hottest afternoon hours. Orr suggested that moving more afternoon games indoors to Atlanta, Dallas Houston or Vancouver, one of four venues available for the tournament, could be a solution. Orr said, "You must be happy with your broadcasters." It's simple if we start with safety. It's complex if we're discussing hosting a large event, making it financially viable and seeing the event take place at all. (Reporting from Amy Tennery, New York; additional reporting by Julien Pretot, Miami; and Lori Ewing, Manchester; Editing by Toby Davis).
Wall Street Journal, June 26,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy.
Blue Origin founder Jeff Bezos has spoken to U.S. president Donald Trump at least two times this month, as he attempts to take advantage of a rivalry between SpaceX founder Elon Mush and Trump to bag more government contracts.
Shell denied that it had approached BP and was involved in negotiations for the largest oil deal of a generation.
Conagra Brands is removing certified colors for food, drugs and cosmetics from its U.S. frozen products portfolio by 2025.
Ulta Beauty announced that its finance chief Paula Oyibo had resigned after just a few months and appointed Chris Lialios, an insider as its interim CFO.
The U.S. Antitrust Commission cleared Mars' $36 billion acquisition of Pringles maker Kellanova, but the EU has opened a full investigation, claiming that it could result in price increases.
- The President has toyed around with the idea that he would announce and select Jerome Powell as his replacement before September or October.
(source: Reuters)