Gold imports by India, the world’s biggest consumer, have slowed as higher prices cool demand for jewelry, Citigroup Inc. (NYSE:C) said. Purchases slumped to 16 to 17 metric tons in May, from 34 tons in April, Citigroup economists Rohini Malkani and Anushka Shah wrote today in an e-mailed report. Gold is set for a 10th straight annual increase, the longest since at least 1920, as investors seeks to protect their wealth on concern currencies will depreciate. Prices rose to a record today, with bullion for immediate delivery reaching $1,265.30 an ounce in London and futures touching $1,263.90 in New York. –Bloomberg
BP plc (NYSE:BP) said Monday morning its cost for the Deepwater Horizon disaster have reached $2 billion. The U.K.-based company explained that this includes "the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs." The revised figure indicates that BP’s costs are rising by $33 million a day. This does not include the $20 billion escrow account set up at the request of the U.S. government. The firm also said it was making progress with two relief wells. "Work on the first relief well, which started May 2, continues and has currently reached a measured depth of 15,936 feet. The second relief well, which started May 16, is at a measured depth of 10,000 feet. Both wells are still estimated to take approximately three months to complete from commencement of drilling. “ -Daily Finance
Wells Fargo (NYSE:WFC) upgraded ProLogis (NYSE:PLD) to market perform from underperform, citing the upside for potential for net asset value, though the broker said execution risks still remain and the group’s exposure to Europe is a modest concern. –MarketWatch
The yuan rose Monday to its strongest level against the dollar in the currency’s modern era as traders bet on the likelihood of long-term appreciation despite the Chinese central bank’s surprise move to keep the exchange rate flat ahead of trading. The yuan’s rise led to gains in China’s stock market, where hopes of a stronger local currency buoyed demand for index heavyweights such as airlines and metals firms, which would likely benefit from lower yuan-denominated prices for imports of raw materials like fuel and iron ore. Yields on Chinese government bonds and local interest-rate swaps also fell on expectations that a stronger yuan will reduce the need for an imminent interest rate hike. The yuan was quoted at 6.8015 to the dollar in China’s over-the-counter market Monday afternoon. –The Wall Street Journal
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