1 Isis captures more Iraqi towns (Martin Chulov
& Rory Carroll in The Guardian) Jihadist fighters in Iraq seized three
border crossings into Syria and Jordan and four nearby towns over the weekend,
giving the Islamic State in Iraq and the Levant (Isis) control over much of the
country's western frontier and directly threatening the country's main power
supply.
Isis can now add large swaths of the Iraqi border to
a 300km stretch of land it already controls along the Euphrates river, from
Mosul in the north to Saddam Hussein's home town, Tikrit, which now gives the
group a launching pad for potential attacks on strategic sites, including the
lifeblood of Iraq's electricity generation, the Haditha dam. The gains also
bring the crisis in Iraq to the doorstep of Jordan, a key ally of the US.
The latest Isis offensive comes as Iraq's polarised
political blocs face a week of intense lobbying to form an inclusive government
that could unite the fracturing country. The latest Isis offensive in western
Anbar province has seen the group take four towns in recent days.
2 China manufacturing up first time in six months
(Straits Times) China's manufacturing activity expanded in June for the first
time this year as the effects of Beijing's mini-stimulus on the world's
second-largest economy gradually kick in, HSBC has said.
The bank said in a statement that its preliminary
purchasing managers index (PMI), which tracks activity in China's factories and
workshops, came in at 50.8 this month, the highest since November's identical
figure. It was also the first time since December that the index has been above
the 50-point break-even level, suggesting the sector is expanding.
3 India’s delayed monsoon and the pressure on
investors (Neena Rai & Debiprasad Nayak in The Wall Street Journal) The
delayed onset of India’s monsoon rains has been attracting attention from
commodity market participants. Sugar prices are already reacting to these fears
and woes could even hit gold demand, say analysts.
Crucial for the irrigation of India’s many crops,
the rains this year have so far fallen short. ANZ Bank says monsoon-related
precipitation is currently running 45% below usual levels. That will hit the
October harvest. India is the world’s second-largest producer of sugarcane, and
over half the country’s workforce is employed in agriculture.
A delayed monsoon and a strong El Niño could hit
sugar output by as much as 7%, says Citi. Sugar futures in London for August
delivery were trading 0.3% higher Friday at $490 a metric tonne—their highest level
in just over a month. The delayed monsoon isn’t the only cause; there are also
ship queues at Brazilian ports which is hindering sugar loading and transit.
More than half of India’s gold purchases occur in
rural regions, with demand heavily dependent on agricultural income.
Traditionally, India farmers ramp up gold purchases after a good monsoon and
harvest season, using the yellow metal as a store of wealth. With income from
farming hit, the funds simply won’t be there to support gold demand.
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