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Gunfight outside Israeli consulate kills at least two people
According to reports and videos, at least two assailants were killed in an extended gun battle that took place between police and the attackers outside the Israeli Consulate in Istanbul. Video shows 'police officers taking cover and pulling guns out as shots rang for at least 10 mins. One person was covered with blood. Another video obtained by showed a?apparent attacker? moving between parked white 'police and security?buses, and firing for several minutes using an automatic rifle and a handgun. Two bodies were found on nearby grassy and street areas. The media reported that two policemen were injured. This incident occurred outside the tower of the Israeli consulate in Istanbul's financial area. Since the?Hamas-Israel 'war? began in 2023, there has been a heavy armed police presence in the vicinity of?the Israeli Consulate. According to a source familiar with the situation, there are no Israeli diplomats currently stationed in Turkey.
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Gold prices rise as oil and dollar weaken; Middle East investors focus on gold
Gold prices rose on Tuesday as the dollar softened, and oil prices dropped. Investors remained focused, however, on signs that the U.S./Israeli war against Iran is coming to an end. Spot gold rose 0.6% to $4,674.19 an ounce at 1017 GMT after rising by 1% earlier. U.S. futures gold for June delivery were up 0.3% to $4700.40. Gold priced in greenbacks is now slightly cheaper than it was before the U.S. Dollar's 0.2% decline. Gold is supported by the geopolitical uncertainty and economic instability caused by war. However, the upside is capped by a strong dollar, and rising bond yields that penalize gold. "Gold bulls" will remain on the sidelines unless there are significant progresses?in this case and a realistic possibility of de-escalation," said he. The Iranian ambassador in Pakistan said that "positive and productive efforts" made by Islamabad for a peaceful end to the conflict were "approaching an important, sensitive stage." The statement was released as Iran and Israel exchanged attacks, as Tehran refused to accept a ceasefire agreement and reopening the Strait of Hormuz on the eve of the deadline set by U.S. president Donald Trump for Tehran to comply with his demands or be "taken out." The oil price dropped but remained at $108 per barrel. As oil prices rise, global inflation fears are escalating. Gold is typically a good inflation hedge, but higher interest rates reduce its appeal as an 'non-yielding' asset. According to CME's FedWatch, investors are largely predicting that there will be no rate reduction in the United States this year. The current macroeconomic backdrop marks a change from the previous disinflation narrative and presents near-term challenges to bullion. China's central banks has remained on course with gold purchases for the 17th consecutive month. Its reserves reached 74.38 fine troy-ounces at the end of the month, up from 74.22 millions the month before. Spot silver rose 0.1%, to $72.69 an ounce. Platinum fell 0.4%, to $1,971.19, and palladium remained steady at $1485.48.
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India's demand for sugar and edible oils drops as commercial gas shortages affect restaurants
India's largest market is experiencing a decline in sugar and edible oil consumption as restaurants are forced to reduce their operations during the summer holidays due to a shortage of commercial gas cylinders. Reduced consumption of edible oils could reduce?India's?imports, including palm and sunflower oils from Argentina, Brazil and Russia, as well as soyoil from Indonesia and Malaysia. Gas cylinder shortages are affecting roadside restaurants and eateries, causing them to reduce their consumption of edible oil, according to B.V. Mehta. He is the executive director of SEA, the Solvent Extractors' Association of India. The restaurants offer popular deep-fried dishes like samosas and chole bhature. Manoj Yadav runs a roadside restaurant that serves chole bhature. He said he couldn't operate last week because he ran out of cooking gas. This week, he will resume business after securing one cylinder, which is likely to last no more than 10 days. Gas cylinders have not been delivered even three weeks after booking. Yadav stated that he was unsure if a new gas cylinder would be delivered or when. India, which is the second largest importer of liquefied petrol gas (LPG), is experiencing its worst gas shortage in decades. The government has cut supplies to industries, hoping to protect households from shortages. Imports accounted for about 60% of the country's demand last year. Around 90% of these imports were from the Middle East. According to a senior official at the National Federation of Cooperative Sugar Factories Ltd. (NFCSF), the gas shortage also affected sugar demand. This usually increases during the summer months. The official stated that the wedding season has begun and many roadside sweet shops, tea stalls, etc. have temporarily closed or reduced their operations. The official asked for anonymity because they weren't authorized to speak with the media.
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China's central banks continues to buy gold for the 17th consecutive month
Data from the 'People's Bank of China (PBOC),' showed on 'Tuesday that China's central banks stayed on 'course' on gold purchases for a 17th month in a row. Gold holdings in the country rose from 74.22 to 74.38 millions fine troy-ounces at the end of the month. PBOC data showed that the value of gold reserves fell to $342.76billion at the end last month. This is down from $387.59billion a month before. The value of China's gold reserves fell for the first time since May 2025. This was due to the steepest monthly decline in gold prices since 2008. Spot gold dropped 11.52%. Inflation and growth concerns, as well as higher interest rates expectations, have all contributed to the decline in gold, a traditional safe-haven investment during times of geopolitical unrest. Analysts at ING Economics noted that the steady purchases by central?banks around the world helped to limit gold's downside during periods of volatility. The PBOC, after a 18-month gold?buying spree ended in May 2024?returned to purchases six months subsequently.
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Japan's economy is slowing down, and there are early signs that war will cause pain
The 'index of the health of Japan’s economy' fell in February, according to a report released by the government on Tuesday. This reveals a weak spot - even before the Iran War. Recent private surveys also revealed an increase in bankruptcy in the house-painting sector. Small, mom-and pop operators, already struggling with severe competition and chronic labor shortages, have been affected by rising fuel costs and supply restrictions caused by the conflict. Data showed that the coincident index, which measures the state of the economy at the moment, fell 1.6 points in February, month-on-month, to 116.3. This was the first decline in two months. The decline was largely due to declining shipments of?semiconductor chips and chipmaking equipment as well as a decrease in?auto production, casting doubt on the Bank of Japan's belief that robust global demand would support exports. As hopes of a quick end to the conflict fade, countries like Japan are faced with increasing challenges. Analysts say that a shortage of naphtha will affect?factory production, causing the economy to suffer more damage in the current quarter. Tokyo Shoko Research, a private think tank, said that the number of bankruptcy filings by painting companies rose to the highest level since 23 years in the fiscal year ending in March. Tokyo Shoko Research reported that due to disruptions in naphtha supply, major paint manufacturers have increased thinner prices from March by up to 80%. This has been a serious blow to the small painting businesses, according to their report. It may be difficult for small operators, due to fierce competition, to pass on cost increases. It said that bankruptcy cases could increase in fiscal 2026.
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China cuts domestic fuel prices again to reduce the impact of rising oil prices
China has again reduced its gasoline and diesel price increases to half of what they usually are. This is to try to reduce the rising oil prices caused by the Iran War and the closure of the Strait of Hormuz. The oil prices continued to rise after Iran rejected the United States' ceasefire proposal and as a deadline for Tehran, set by U.S. president Donald Trump, to come up with a deal before he was "taken out", grew closer. The NDRC (National Development and Reform Commission) announced that the retail gasoline and diesel prices would increase by 420 yuan and 400 yuan, respectively, at midnight on Tuesday. A 50-litre tank containing?92-octane gas will now cost an average car owner $2.4 extra. According to the statement, under its scheduled pricing mechanisms, the increases would've been 800 yuan yuan yuan yuan yuan yuan yuan yuan 770 yuan yuan respectively. NDRC reported that the government continues to implement measures for controlling refined oil prices in order to reduce the impact of increasing international oil prices on domestic markets. Every 10 working days, the agency adjusts gasoline and diesel retail prices across the country. The adjustment rate is based on changes in crude oil prices, and includes average processing costs, taxes, distribution expenses, and profit margins. China raised the price of gasoline and diesel on March 23, by 1,160 and 1,115 Yuan per ton respectively. This was a reduction of about half the increase scheduled. Thanks to its oil reserves, rapid adoption and diversified supply, the world's second largest oil consumer has weathered oil scares better than other Asian countries. Official data from the manufacturing purchasing managers' index (PMI), showed that the impact of the war on the Chinese economy and its end users was minimal. This resilience has not been extended to the airline sector, where fuel surcharges have had to be raised. Economists have warned that the war may spark a "bad inflation" in China as a shock in input costs threatens to squeeze the margins of the largest manufacturing base on earth.
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CEE ECONOMY - Czech inflation rises in March, but remains below the central bank's target
The 'Iran War' sent fuel prices soaring in March, but the headline figure was still below?predictions and the 2% central bank target. According to preliminary data released by the statistics office on Tuesday, the?headline?figure increased 1.9% from a previous year in March, which is faster than February's 1.4%. According to a poll, analysts had predicted 2.0%. The data revealed that consumer prices increased 0.6% month-over-month, with a rise of 5.3% in energy prices, including motor fuels. After?the government took steps to reduce energy bills, the global oil price shock came at a time of low inflation in the Czech Republic. Last month, the Czech National Bank revised its forecasts to include higher oil prices. The Czech National Bank still expects inflation to be below 2% in this year. The UniCredit economist Pavel Sobisek stated that the consideration of higher interest rates would likely only take place in the fall, when secondary effects from the oil shock have an effect on inflation. At the last policymakers' meeting on March 19, they voted to keep 'their main interest rate? at 3.50%. According to the minutes of the meeting, Governor Ales Michl said that the bank should not undervalue the "cost shock" caused by the conflict in the Middle East. Michl stated in the minutes that the Board was ready to tighten the monetary policy if there was a risk of rising core inflation.
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Japan finance minister vows close G7 coordination as market volatility persists
Satsuki Katayama, the Japanese Finance Minister, said that the country would remain in close contact with other countries of the Group of Seven. The Middle East conflict has caused concern about Japan's fiscal expansion. The yield curve for Japan's government bonds has risen this week. The 10-year JGB yield reached a 27-year-high of 2.43%. Meanwhile, the yen hovered near the psychologically significant 160-per dollar mark, which analysts warn may trigger a government intervention. Katayama, a G7 Finance Minister and Central?Banker, said that the sharp changes in oil prices and developments in the Middle East are having an impact on markets. This was in response to a question about rising JGB yields. She added, "Our position has always been that we will continue to be in close contact with our G7 counterparts and make sure that we communicate clearly our message." Analysts claim that the JGB selloff reflects "growing unease" over Japan's increasing fiscal spending in order to cushion the rising energy costs. This strain is made worse by yen's decline. After a snap-election in January, the Japanese parliament will?pass on Tuesday an unprecedented 122.3 trillion-yen general-account (765.48 billion dollars) budget for the fiscal period that began in April. Japan's economy is vulnerable to fuel price increases due to its heavy reliance upon imports. The government could soon be under pressure to allocate an additional budget for stimulus. How to pay for fuel subsides to keep gasoline around 170 yen per litre is the immediate problem. The programme, which was launched on March 19, was estimated to cost 300 billion yen per month. This bill has now risen to 500-600 bn yen as the oil price rises due to a prolonged war in Iran. Reserve funds of 800 billion yen ($5billion) will be used to fund the subsidies. Even if Tuesday's budget unlocks another 1 trillion yen in reserves, the current pace of the program would exhaust these funds within months. A government official said privately: "Unless the structure of the subsidies is changed, a supplementary Budget will sooner or later be necessary." Sanae Takaichi, the Japanese Prime Minister, told lawmakers on Tuesday that she has 'no immediate plans' to ask businesses and households to reduce energy consumption in a way that would harm economic activity. This is despite concerns about supply triggered by war in Iran. $1 = 159.8100 Japanese yen (Reporting and editing by Sonali Paul, Shri Navaratnam and Makiko Yamazaki)
UK's Pennon swings to HY loss on weak South West Water performance
British water energy Pennon swung to a loss in the first half on Wednesday, partially due to lower consumption and lacklustre performance in its South West Water department, which was impacted by a parasite outbreak this year.
The business stated income at its South West Water department slipped about 2% throughout the reported duration, while underlying running expenses jumped nearly 5%.
In the middle of elevated costs connected to power, the UK water sector is dealing with growing scrutiny over environmental failures, monetary instability, and infrastructure obstacles, triggering calls for regulatory reforms and better investment in sustainability.
In September, Pennon stated that it had recognised expenses of about 16 million pounds ($ 20.1 million) in the very first half of the year associated to the Brixham water quality event, triggered by a. parasite that caused diarrhoea.
The London-listed business posted an adjusted pre-tax loss of. 13.8 million pounds for the six-month period ended Sept. 30,. versus a profit of 9.1 million pounds in 2015.
(source: Reuters)