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Gold reaches a record high in less than a week on US-Iran Peace Deal Hopes
The gold price soared to its highest level in over a week after reports that the U.S.A. and Iran were close to a peace deal. This quelled fears of inflation and high interest rates. By 2:10 pm EDT (1810 GMT), spot gold had risen 2.8%, to $4685.23, after reaching its highest level in more than a month earlier. U.S. Gold Futures closed 2.8% higher, at $4694.30. The U.S. Dollar Index fell by 0.4% making dollar-priced materials more affordable to other currency holders. The optimism that a final agreement between the U.S. "The optimism about a final deal between the?U.S. I wouldn't say that we are out of the woods yet. The market will continue to "pivot" on Middle East headlines. IRAN REVIEWS US PROPOSAL Iran announced that it was reviewing a U.S. proposal after sources claimed Washington and Tehran had been working on a one-page memo to end the Gulf War, leaving difficult issues like Iran's nuke programme for later. Global oil prices fell after reports of a possible agreement. Brent crude futures fell to about $100 per barrel. Inflation concerns are heightened by higher oil prices, which could lead central banks to maintain high rates in order to combat price pressures. Gold is a hedge against rising inflation but tends to suffer in an environment of high rates, since it pays no interest. Investors will be watching the release of the U.S. monthly employment report on Friday. This report will test whether the U.S. economy is resilient enough to allow the Federal Reserve to maintain its monetary policy, or if a softer labour market might revive the case for rate reductions. ADP's National Employment Report shows that private payrolls in the U.S. increased more than expected for April. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Paul Simao, Barbara Lewis and Tasim Zahid) Ashitha Shivprasad, Bengaluru (Reporting) Barbara Lewis, Tasim Zahid and Paul Simao edited the article.
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In 10 years, Argentina's lithium and copper exports will reach $32.7 billion
Luis Lucero, Argentina's mining Minister, said that the country expects to export $20.6 billion of copper and $12.1 billion of lithium in 10 years. This is up from $6.0 in mining exports in last year. The expected surge in lithium exports and copper is an early indicator that President Javier Milei’s RIGI incentive scheme is unlocking capital for large-scale mining. If achieved, these export levels would be five times higher than the mining exports of 2025. This would provide a new major source of hard currency to an economy that has been historically restricted by foreign exchange shortages. In 10 years Argentina could produce?580,000 tonnes of LCE (Lithium Carbonate equivalent) and 1,641,000 tonnes of copper per year, Lucero stated in an interview at the'sidelines' of a mining conference in San Juan Province. Lucero estimated previously that Argentina's mine exports will more than double from $4 billion to $10 billion by 2027. Lucero stated that the total value of approved mining?projects and those submitted to the RIGI (Large Investment Incentive Regime) in the?country amounts to $50.692 Billion. Milei said that the scheme would start in 2024 and attract projects worth $70 billion within a year of its implementation. RIGI helped Argentina to attract investment from mining giants such as BHP and Rio Tinto, as the government aims for mining to be a major sector?in Argentina alongside energy and agricultural. Argentina is the fourth largest supplier of lithium in the world. Together with Chile and Bolivia it forms the "lithium triangular" which contains the largest reserves of this white metal, used for electronics, electric cars, and other key technologies. It also exports silver and gold, and there are major copper projects in development. These include Vicuna, by Australia's BHP, and?Canada’s Lundin Mining. Los Azules, by McEwen Copper a subsidiary of McEwen Mining. The majority of new copper projects are expected to begin operating around 2030. Lucero stated that the idea of a copper?triangle? with Chile and Peru was?starting to emerge. "Our greatest comparative advantage is that Argentina has just begun. We still have vast tracts of virgin land to explore, and geological potential that is underdeveloped. "We have a historical opportunity," Lucero stated. (Reporting and writing by Lucila SIGAL; editing by Nia WELLS)
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Exelon raises capex plan on data center demand, tops quarterly estimates
U.S. utility Exelon increased its capital expenditure plans and surpassed Wall Street expectations for the first-quarter adjusted profits on Wednesday, due to higher electricity prices, strong demand, and favorable weather. U.S. utilities have increased their capital budgets in order to keep up with the increase in demand for power. Exelon also increased its capital expenditures projected for the next four-year period to $41.7 billion from $41.3 billion. Executives said that the company and Invenergy bid on two Illinois transmission projects, valued at $1.9 billion, in Tranche 2.1.1 of regional grid operator MISO. The company added that?Exelon’s data-center pipe is supported by Federal Energy Regulatory Commission-approved transmission security contracts, with?approximately $1 billion of associated collateral. The company expects its total regulated assets to grow 7.9%, and its value of transmission assets to increase by 16%. Rate-case processes are used by regulated utilities to determine the amount of electricity, gas and other services that customers will be charged. While net income at Exelon’s Commonwealth Edison (ComEd) unit, Illinois’ largest electric utility, rose slightly to $310 million, The earnings at PECO, Pennsylvania's largest natural gas and electric utility, increased by 4.5% to $278 million. Exelon's revenue for the quarter ending March 31 was $7.24 billion, exceeding analysts' estimates of $6.93billion. LSEG data shows that the adjusted profit per share of Chicago-based 'company came in at 91 cents, compared to analysts' average estimates of 89 cents. Varun Sahay, Bengaluru. Diti pujara, editing.
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Spain's Endesa confirms its full-year guidance following a first quarter that exceeded expectations
Spanish utility 'Endesa' confirmed on Wednesday its?full year profit - guidance after posting a net profit of 24% higher than market expectations in the first quarter. Enel's company booked a net profit of 725 millions euros ($852million) in the third quarter. This compares to 583 million euro a year earlier and 620million euros that analysts polled by LSEG had expected. Endesa reported that demand for?residential and?services segments was strong. Industrial demand, however, has been affected primarily by geopolitical uncertainties. The utility has reaffirmed their guidance for the year 2026. The utility has predicted a 'net profit' of between 2.3 and 2.4 billion euro and an 'earnings prior to interest, taxes depreciation, and amortization (EBITDA),?between 5.8 and 6.1 billion euro. Endesa plans to invest 10.6 billion euros in the 'power networks' through 2028, as part of a three-year investment plan announced in February. The company said that boosting investments was crucial for reducing grid bottlenecks.
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The French government claims that fuel margins have returned to levels seen before the crisis
The French Finance Ministry announced on Wednesday that fuel retailers are now making the same gross margins they did before the Iran war, after a brief spike in prices. The data release comes after an announcement made in April, which was heavily criticized by the industry. It said that the French government would consider fixing the price at the pump so as to prevent fuel distributors from earning windfall profits because of the record high prices due to the closure of Strait of Hormuz. The statement from the Ministry read: "The government will continue to closely monitor the evolution in prices and margins with close dialogue with industry actors." The Finance Ministry did not reply to a question about whether they still plan to implement their decree capping the prices. The French prime minister said that 'nothing is off the table', including a superprofits tax, to help ease financial hardship for consumers. The government's public discussion of a possible decree to cap margins coincided with the peak in margins and their subsequent stabilisation to pre-war levels. This shows that the industry understood the message, said an official from the finance ministry who declined to give his name. Data shows that the profit margins on gasoil used in diesel engines jumped from $0.28 per liter ($1.25 per gallon), before the war, to almost $0.40 per litre ($1.51 a gallon) during the first week in March, before they slowed down. The margins on gasoline rose from 0.30 euro per litre (or $1.32 per gallon), pre-war, to 0.33 euro per litre or $1.48 per gallon in the same time period. The government also added that French motor fuel consumption dropped by 11% in April. It attributed this to a price-related reduction of demand as people drove less after fuel prices increased.
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Gold reaches a record high in less than a week on US-Iran Peace Deal Hopes
The 'U.S. Iran and the United States may be close to a deal that will bring an end to high interest rates and inflation. By 11:35 am EDT (1535 GMT), spot gold had risen 3% to $4693.97 an ounce, after reaching its highest level in the previous session since April 27. U.S. Gold Futures increased?3% to $4705.60. The U.S. Dollar Index fell by 0.5% making dollar-priced materials more affordable to other currency holders. The?optimism regarding a final agreement between the U.S.A. and Iran caused some relief in 'gold in the short term, as lower oil prices, moderated concerns about inflation, and shifted the biases in regards to Fed action later in the year, said Peter Grant. I wouldn't say that we are?completely in the clear. The market will continue to be influenced by Middle East headlines. IRAN REVIEWS US PROPOSAL Iran announced that it was reviewing a U.S. proposal after sources claimed Washington and Tehran had been working on a one-page memo to end the Gulf War, leaving difficult issues like Iran's nuke programme for later. Global oil prices fell after reports of a possible agreement. Brent crude futures fell to about $100 per barrel. Inflation concerns are heightened by higher oil prices, which could lead central banks to keep interest rates high in order to combat price pressures. Gold is a hedge against inflation but it suffers in an environment of high rates, since it pays no interest. Investors will be watching the'monthly U.S. Employment Report' on Friday to see if the U.S. Economy is resilient enough to maintain the Federal Reserve monetary policy or if a softening labor?market might revive the argument for rate cuts. According to the ADP National Employment report, U.S. payrolls were higher than expected in April. (Reporting by Ashitha Shivaprasad in Bengaluru; editing by Paul Simao and Barbara Lewis) (Reporting and editing by Paul Simao, Barbara Lewis, and Ashitha Shivaprasad from Bengaluru)
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NY Fed Report finds that gas prices are increasing and affecting lower income groups harder
Fuel costs are rising due to the Middle East conflict, and this is putting pressure on households with lower incomes. Those who have more money can navigate the situation better. In a report published on Wednesday, New York Fed analysts wrote that "Households experienced very different gasoline expenditures" following the start of the Middle East war. The conflict has 'roiled global supply chain and sent gasoline prices soaring. The report stated that in March, wealthy households were able increase their spending to keep up with higher gasoline prices, but maintain the same real consumption level. Meanwhile, low-income households saw their nominal spending rise, while their actual consumption of gasoline decreased. The blog post said that lower-income households could have responded by moving to cheaper options. "Potentially, they may have substituted public transport or carpooling where available," it stated. The blog post noted that the current experience is similar to the last energy shock four years ago, when Russia invaded Ukraine. However, now the gap between income levels and consumption trends has become "quantitatively greater." The New York Fed's report is part of a series done by the bank's analysts in recent days to examine diverging economic perspectives?between households with high and low incomes?in the U.S. The rising gasoline prices are putting pressure on American households, and pushing inflation to high levels.
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NRG Energy misses its quarterly profit forecast due to mild Texas weather and higher costs
NRG Energy, a Texas-based power producer, missed Wall Street's estimates for its first-quarter adjusted profits on Wednesday, due to a milder weather pattern in Texas, and increased costs. This sent the company's shares down 3.6% at opening. Interest expenses for the company in the third quarter increased to $285m from $163m a year earlier, impacted by costs associated with the completed acquisition of assets in power generation from investment firm LS Power. The deal was valued at?12 billion. NRG, based in Houston, Texas, saw its operating costs increase by 33.4% from $9.93 billion to $9.93 Billion. The company expects to begin commercial operations at its 415 megawatt T.H. The company expects its first project in Texas, the Wharton plant, to begin by May's end. NRG's existing fleet has up to two gigawatts worth of commercial conversion and uprate opportunities. This is up from the nearly one gigawatt that was previously disclosed. The additional gigawatts would be generated by traditional natural gas upgrades in addition to previously announced CT-to CCGT (combustion-turbine to combined-cycle-gas turbine) conversion. Robert Gaudette, an insider, succeeded Larry Coben last week as CEO of the company. NRG reported quarterly revenue of $10.26?billion, an increase from $8.59 billion a year earlier. The adjusted core profit for its Texas unit dropped 27.8%, to $216 millions. This was due to mild winter weather which led to a?decrease in retail?load? of nearly 30%. In the early part of this year, the power plants in the east U.S. suffered a surge of outages due to a lack of natural gas and cold temperatures. The company's East division saw its adjusted EBITDA fall 2%, to $464m, as a result of?higher electricity costs during Winter?Storm Fern. LSEG data shows that the adjusted profit per?share of $1.49 for the three-month period ended March 31, was below analysts' average estimates of $1.78. (Reporting and editing by Shreya Biwas in Bengaluru. Pooja Meon is based in Bengaluru.
Trump attempts economic reset while Republicans worry about high gas prices
The U.S. president Donald Trump is expected to try and dismiss concerns about the economy and the sagging prospects of the Republican Party this week during a swing-style campaign through the battleground state of Arizona and Nevada, while the war with Iran?pushes up gasoline prices.
Trump will use his Thursday stop in Las Vegas to promote his immigration and tax bill, which includes promises for?court hourly? and hospitality workers. The soaring prices of everything from groceries to gas, to housing and insurance have shaken up the U.S. economic system. This has also affected Trump's ability to rally conservatives for November's midterm election. Five Republican strategists said they feared the White House had lost control over the affordability debate. This would neutralize the political boost from the tax law and the resilient economy, which has pushed past Trump's previous military interventions and trade war.
David Damore is a professor of political science at the University of Nevada in Las Vegas. He said that "the cost of living will trump everything -- no pun intended-- over any small changes in tax returns."
Trump's advisers are more optimistic. They predict that Trump will soon reach a deal with Iran to reopen the Strait of Hormuz.
White House spokesperson Kush Desai stated that Trump was always clear about the economic impact the Iran War would have in the short term. The tax benefits he helped to deliver also "reflect the Administration's continued focus on delivering our affordability agenda here at home."
Higher fuel prices will lead to a sticky inflation in all consumer goods and services.
This presents serious risks to Republicans who are facing an increasingly hostile map of reelection in the House of Representatives as well as Senate.
TRICKY MIDTERM MAPS According to Amy Walter of the Cook Political Report, the leading election prognosticator, Democrats are the overwhelming favorites for capturing the majority in the House. Meanwhile, key Senate races are moving in favor of Democrats in North Carolina and Georgia. Trump's approval ratings in late-March/Ipsos surveys fell to 36%. This marks a low in his second term.
Nevada and Arizona also have competitive Senate, House and local elections. Trump will 'attend an event in Phoenix hosted by the conservative group Turning Point USA on Friday.
The Republican legislators hoped that provisions of the One Big Beautiful Bill Act from last year, which included no tax on tips or overtime pay as part of Trump's $4.1 trillion agenda would resonate with voters looking for economic relief.
"I don't think it will happen," said a Republican strategist who consults on congressional races. They spoke anonymously because they were discussing sensitive issues. In recent weeks, the challenge Republicans face has been exacerbated by Trump's focus in Iran and his public disagreement with Pope Leo.
Trump announced last week that the White House would be sending senior adviser James Blair to help with midterm campaigning. This is a sign of growing concern over the prospects for his party.
WEST COAST SLING Trump will host on Thursday a roundtable focused on his policy of eliminating federal taxes on tipping, a measure aimed at service employees in a city dominated by hospitality jobs. Supporters claim it will increase take-home pay of restaurant, hotel, and casino workers that rely heavily upon gratuities.
Trump's tax law for 2025 includes a provision that allows workers who qualify to deduct tip income up to $25,000. However, payroll taxes will still be applied and the benefit is phased out as higher-earners earn more. Analysts estimate that approximately 4 million Americans work in tipped positions, and analysts estimate an average benefit of $1,400 per year for those who are eligible.
Karoline Leavitt, White House spokesperson, said that more than 53 million taxpayers claimed at least one tax cut signature by Trump this filing season. She said the average tax refund was over $3,400. Gas prices are still a concern. Trump has sent mixed messages about how long higher fuel prices will last. At times, he suggested that Americans might have to suffer for a prolonged period of time due to global supply disruptions. Other times, he said that the price will drop sharply when the war ends.
People familiar with the discussions in and around the White House say that the administration has limited options for lowering energy prices, beyond a complicated diplomatic effort linked to the Strait of Hormuz.
Officials released oil from the Strategic Petroleum Reserve and adjusted shipping rules. They also eased sanctions against Russian and Iranian 'oil. Prices remain high, with benchmarks globally exceeding $90 per barrel.
One of the oil executives involved in the discussions stated, "All that's left are bad options. We have asked White House to not pursue them."
Trump has tried to calm expectations by portraying midterm elections losses as a normal occurrence for the party currently in power while insisting that his administration can reverse this trend.
He told Fox Business Network’s "Mornings with Maria", a program that aired on Wednesday, "Even if you have a fantastic president, midterm elections tend to be lost." "So, we're trying to turn it around."
There's no good reason for the Republicans to lose. (Reporting by Jarrett Renshaw and Jacob Bogage; additional reporting by Humeyra Pamuk, Editing by Colleen Jensen, Rod Nickel).
(source: Reuters)