Wealthion Macro Bites 6-22
On Saturday, Iran’s Khatam al-Anbiya Central Headquarters announced it had reclosed the Strait of Hormuz to all vessel traffic (citing Israeli violations of the southern Lebanon ceasefire) and President Trump immediately threatened U.S. military retaliation. However, Iranian Foreign Minister Abbas Araghchi said on Monday that “major progress” had been made in all-night peace talks in Switzerland (Burgenstock). Pakistani and Qatari mediators said the U.S. and Iran had agreed to a roadmap towards a final deal, including a “mechanism” to end fighting between Israel and Hezbollah militants and a “communications line” to ensure safe passage of commercial ships through the Strait.
In retaliation for Washington placing several Chinese companies under export restrictions earlier this month, China added MP Materials, USA Rare Earth, Aveox and seven other U.S. companies to an export control list which imposes a full ban on exports of all “dual use” critical minerals to these companies (tightening prior rules only requiring export licenses). China’s Commerce Ministry stated, “Organizations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to those entities."
At a meeting with industrial and artisanal gold producers, Guinean President Mamadi Doumbouya announced a ban on all “raw gold” exports in an effort to boost local processing and support the domestic economy. Doumbouya noted, “Guinea holds the second highest gold reserves in West Africa, but its gold leaves the country daily in its raw state to be processed, certified, and sold elsewhere. I am putting an end to that starting today. Guinea will now require its gold to be processed within its own borders. Raw gold will no longer leave Guinea.”
In an encouraging development as Panama weighs reopening First Quantum’s massive Cobre Panama copper mine, an independent audit commissioned by Panama’s Environment Ministry found the project broadly compliant with environmental, legal and operational obligations. The audit gave the mine an overall score of 88% (short of the top "optimized" rating); flagged weaknesses in reforestation, habitat restoration and biodiversity protection; and identified future liabilities linked to the tailings facility, water quality, acid drainage, erosion, biodiversity loss and the effectiveness of restoration efforts. Stay tuned…
Canada’s Office of Superintendent of Financial Institutions (OSFI) lowered the capital requirement for the country’s biggest banks for the first time in 3 years (from 3.5% to 3%), in a move that could unleash hundreds of billions of Canadian dollars for lending, helping boost Canada’s economy during a time of global uncertainty. OSFI Superintendent Peter Routledge stated, “The opportunities are there for the banks and we’re getting out of the way…What we’ve done is provide clarity and certainty around capital. And it’s up to the banks to figure out how to deploy it.”
European bonds ticking higher, with yields falling 2bps-3bps across the board. Spot gold +1.25% and spot silver +2.5%. Brent futures -1.9% ($79.01) and WTI futures -1.0% ($75.09).
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