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China PMI lifts Global shares and Commodities

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LONDON – Reassuring Chinese factory data and another record high for Wall Street lifted world stocks and commodities on Monday, as markets waited to see how far the European Central Bank will go with policy easing plans this week.

China’s manufacturing activity expanded at the fastest pace in five months in May, data showed on Sunday, reinforcing views that the world’s second-largest economy is regaining momentum after a wobble at the start of year.

Basic resources stocks .SXPP including miners and other commodity companies were the biggest gainers as the main bourses in London .FTSE and Frankfurt .GDAXI started what is set to be a busy week for markets on a positive note. .EU
After weeks of speculation about interest rate cuts and additional unconventional policy easing measures, the ECB meets on Thursday with expectations running extremely high.

The euro fell 0.15 percent to $1.3610 EUR=, not far from a three-month low of $1.3586 touched on Thursday. It also fell against the pound EURGBP=D4 to 81.25 pence, with diverging monetary policy outlooks between the ECB and the Bank of England, which also meets this week, underpinning the British currency.

Ahead of the ECB meeting, German inflation data for May due at around 1200 GMT will be closely watched. The ECB is increasingly concerned that extremely low inflation could be becoming entrenched in the euro zone. <ECONALLDE

Like many banks, Societe Generale expects the ECB to cut rates on Thursday and start charging banks that deposit cash with it. But its economists also expect a far more aggressive 300 billion euro ($409 billion) Aset Backed Securities (ABS) purchase programme to be announced.

“We are expecting quite a slew of measures from the ECB,” said Alvin Tan, an FX strategist at Societe Generale in London.

“In our view all the rate cuts are priced in, even a negative deposit rate, but an asset purchase programme is probably not, so that would weaken the euro.”

RATE EXPECTATIONS

In Asia, the positive sentiment spilling from China had helped Tokyo’s Nikkei .N225 jump 2.1 percent, while Australian shares .AXJO added 0.3 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed. Greater China markets were closed on Monday for a holiday.

“Risk appetite has risen mainly on bright economic data from China, but the direction for the month will likely depend on other economic data like U.S. jobs figures this week,” said Hikaru Sato, a senior technical analyst at Daiwa Securities in Tokyo.

The dollar was broadly stronger. It edged up 0.2 percent to 102.03 yen JPY= thanks in part to slightly higher U.S. Treasury yields and as it rode momentum from Friday’s record close for S&P 500. .N

Investors will be looking to this week’s non-farm payrolls jobs and wage data for confirmation that recovery for the world’s largest economy is on track.

The good China PMI reading also lifted oil and base metals by improving demand prospects for the world’s second biggest economy.

Brent crude LCOc1 gained 40 cents to $109.81 a barrel. O/R Three-month copper on the London Metal Exchange CMCU3 climbed 0.6 percent to $6,888 a tonne. The metal gained 3.1 percent in May, its biggest monthly advance since December. MET/L

Safe-haven gold slid for a fifth straight session. Spot gold XAU= was at $1,245.10 an ounce, not far from the four-month low of $1,241.99 hit on Friday. GOL/

“It’s certainly a good sign to see the PMI starting to pick up, which suggests that the Chinese fine-tuning of policies is starting to gain a bit of traction which is a positive for industrial commodities,” said analyst James Glenn of National Australia bank.

– REUTERS

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Tesla Aims for 2028 Commercial Production of Flying Car

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Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

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Marketers Eye Portion of FG’s Petrol Discount

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

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Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

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In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

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