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Gold prices steady before US House vote on reopening government
Investors waited for a House of Representatives vote to reopen federal government. This could provide clarity about economic data, and possible Federal Reserve rate reductions. As of 1158 GMT, spot gold was unchanged at $4,125.22 an ounce. U.S. Gold Futures for December Delivery rose 0.4%, to $4130.90 an ounce. "Everyone awaits more clarity about the government shutdown, and when data will be coming from the U.S.A. again," said UBS Analyst Giovanni Staunovo. Gold prices are still on the rise. Staunovo said that nothing structurally has changed. Gold prices are up more than 57% in the past year, with a high of $4.381.21 reached on October 20. This is due to geopolitical tensions and economic concerns as well as the Fed's easing monetary policy. On Monday, the U.S. Senate passed a bill to restore federal funding following a government shutdown that set a new record. House lawmakers returned Tuesday to Washington to vote on a measure that could officially resolve the standoff. ADP, a payroll processor, reported on Tuesday that U.S. firms were cutting over 11,000 jobs each week until late October. The market's expectations have changed. CME Group's FedWatch shows a 67% chance of a rate cut of 25 basis points at the Fed meeting next on December 10. This is up from 62% just a day before. After a period of consolidation, gold prices have broken through the $4,050 level. This confirms the continuation of bullish momentum. The next resistance range is $4.160-$4.170/oz. A breach of this range would push the prices to the record high of 4.380/oz," ANZ stated in a report. In a note published on Wednesday, JP Morgan said that it expected central banks and consumers would emerge as reliable purchasers during price drops and predicted gold prices will exceed $5,000 in the fourth quarter 2026. Other than that, silver spot gained 0.6%, to $51.51 an ounce. Platinum fell 0.5%, to $1579.85, and palladium dropped 1.5%, to $1422.25. (Reporting and editing by Alexander Smith, Shailesh Kumar and Anmol Choubey from Bengaluru)
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Copper supports hopes for an end to US Government Shutdown
The copper price steadied Wednesday as the market anticipated the end of the U.S. Government shutdown. At 1122 GMT, the benchmark copper price on London Metal Exchange was unchanged at $10.827 per metric ton. Last month, it reached a record-high of $11,200 due to mine supply shortages caused primarily by disruptions such as an accident in Indonesia. The U.S. House of Representatives will vote on Wednesday on a compromise to restore funding for government agencies and to end the shutdown that began on October 1. The traders said that the anticipated return of U.S. data, which will help investors and Federal Reserve judge the U.S. state of economy, has supported prices this past week. Fed interest rate decisions will determine the direction of U.S. Dollar. A weaker dollar makes metals priced in dollars cheaper for holders of foreign currencies. The expectations of weaker bank lending in China, and a decline in total social finance, which analysts use to gauge metals demand, weighed on sentiment. Zinc stocks at LME registered warehouses have fallen to their lowest level since February 2023, with 35,875 tonnes. . A large premium has been created for the cash-zinc contract three months forward due to low stocks. This would normally bring metal to the exchange. This has not happened this time due to shortages in the physical market. Zinc stocks monitored by Shanghai Futures Exchange Likewise, the price of oil has started to fall. Over the last two weeks, their weight has dropped by 8% to 100,208 tonnes. Zinc for three-months was down by 0.3%, at $3.058 per ton. Analysts believe that China's increasing zinc concentrate imports, and metal production will help ease the tight market. However, they note that it will take some time as so much global capability has been suspended due to high power costs. Aluminium rose by 0.3%, to $2.883 per ton. Lead increased 0.3%, to $2.069. Tin added 0.2%, to $36,700, and nickel fell 0.3%, to $15,005.
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EU ready to negotiate UK Carbon Market Link
A spokesperson for the Danish EU presidency announced on Wednesday that the EU countries had agreed to begin talks with the UK in order to link their carbon markets. This move was billed as a part of the reset in relations after Britain's departure from the EU. The two countries would be exempt from each other's border tariffs on carbon by linking their carbon markets. The linkage will not be completed in time to allow British firms to avoid EU's border tax on carbon. This fee is imposed from January 1, 2019 and applies to imports of steel cement, and other goods. A spokesperson for Denmark's rotating EU presidency said that the ambassadors of all EU countries agreed in a closed door meeting to continue negotiations. It is expected that the ministers of EU member states will approve it without any changes at their meeting on Monday. Both European and UK industry have backed the link. British firms noted that one of the key benefits would be to avoid the EU's border carbon levy, which would no longer apply if both sides linked their carbon markets. The UK government said that the EU border carbon tariff would cost UK businesses around 800 million pounds per year. It will take several more years for the market to be linked, due to the complexity and technical requirements of the schemes. In the interim, British industries may be subject to the EU carbon tax. The UK is planning to introduce its own carbon border tax, a year later than the EU in 2027. (Reporting and editing by Ros Russell.)
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China plans to expand renewable energy beyond the power sector
China's Energy Administration said Wednesday that the country will expand its efforts beyond the power sector in the next five-year period. In its opinion paper on integrating new energies, the National Energy Administration (NEA), said that provinces and power producers must help local governments build their industrial base for green hydrogen and green ammonia. Green hydrogen is produced by using renewable electricity in a chemical reaction to split water molecules into hydrogen and oxygen. It can be used as a fuel for heavy industry, transport and industrial processes, or to power vehicles. It also serves as a source of ammonia and other chemicals, such as methanol and fertilisers. The Department encouraged coastal areas in the United States to investigate using offshore wind power to produce hydrogen. This is a relatively new production method. The document called for the use of renewables in heating, especially in industrial parks. Energy planners consider low-carbon industrial park as key to decarbonisation because the industry consumes 60% of the electricity in the country, according to International Energy Agency. The need to find new outlets for renewable energy is growing urgent, as China's fleet - the largest in the world - sometimes produces more electricity than can be accepted by the grid, a situation known as curtailment. This is likely to be the focus of energy regulators in the next five-year plans. Wood Mackenzie, an energy consultancy, forecasted recently that the solar curtailment rate would average over 5% in China's 21 provinces within the next decade. This is an increase from the 10 provinces that experienced this level of curtailment between January and August of this year. However, it still falls within China's 10% national limit.
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Gold prices steady before US House vote on reopening government
Investors waited for a House of Representatives vote to reopen federal government. This could provide clarity about economic data, and possible Federal Reserve rate reductions. As of 1022 GMT, spot gold was unchanged at $4,124.17 an ounce. U.S. Gold Futures for December Delivery rose 0.3%, to $4130 per ounce. "Everyone awaits more clarity about the government shutdown, and when data will be coming from the U.S.A. again," said UBS Analyst Giovanni Staunovo. Gold prices are still on the rise. Staunovo said that nothing structurally has changed. Gold prices are up more than 57% in the past year, with a high of $4.381.21 reached on October 20. This is due to geopolitical tensions and economic concerns as well as Fed's easing monetary policy. On Monday, the U.S. Senate passed a bill to restore federal funding following a government shutdown that set a new record. House lawmakers returned Tuesday to Washington to vote on a measure that could officially resolve the standoff. ADP, a payroll processor, reported on Tuesday that U.S. firms were shedding more than 11,000 positions per week until late October. The market's expectations have changed. CME Group's FedWatch shows a 67% chance of a rate cut of 25 basis points at the Fed meeting next on December 10. This is up from 62% just a day before. After a period of consolidation, gold prices have surpassed the $4,050 level. This confirms the continuation of bullish momentum. The next resistance range is $4.160-$4.170/oz. A breach of this range would push the prices to the record high of 4.380/oz," ANZ stated in a report. In a note published on Wednesday, JP Morgan said that it expected central banks and consumers would emerge as reliable purchasers during price drops and predicted gold prices will exceed $5,000 in the fourth quarter 2026. Silver spot gained 1%, to $51.76 an ounce. Platinum fell 0.2%, to $1.581.41; and palladium dropped 0.1%, to $1.442.35. (Reporting and editing by Alexander Smith, Shalesh Kuber and Anmol Choubey from Bengaluru)
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Shares of India's Asian Paints jump on the back of higher decorative paints volume; top profit forecast.
Asian Paints, India’s largest paint maker by market share, beat quarterly profits estimates on Wednesday. This was due to higher-than expected domestic volume growth in the mainstay decorative paints segments. The shares of the company were trading at 6.3% more than they were before the results. LSEG data shows that the combined net profit for the quarter of July-September rose by 43%, to 9.94 billion rupees (113.1 million dollars), exceeding analysts' expectations, which were 8.97 billion rupees. The company's profits had been cut in half to 6.95 billion rupees during the previous quarter due to a weak retail market and increased competition in the $9.5billion paints industry. To woo buyers, Asian Paints has cut prices, spurring volume growth. According to at least four brokerages, the volume of domestic decorative paints, which accounts for nearly 90% of the topline, increased by 11%. This exceeded the estimates of 2%-4.5% growth in volume. This resulted in a net sales growth of 6.4%, to 85.14 billion Rupees. Asian Paints was the last major Indian paint maker to report its earnings for the third quarter. This is a period when smaller rivals such as Berger and Kansai Nerolac were hit by lower demand because of an extended monsoon. ($1 = 87.8950 Indian rupees) (Reporting by Hritam Mukherjee and Anuran Sadhu in Bengaluru; Editing by Sonia Cheema)
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Stocks rise on US shutdown relief, but markets keep a yen eye
The world stock market rallied Wednesday, as the U.S. Congress appeared to be on track to end a government shutdown. This will help clear the data fog which has been fueling uncertainty about the U.S. economy outlook. As the yen fell to its lowest level in nine months against the dollar, officials made more comments. European stocks reached a record high early in trade. U.S. Stock Futures indicated a positive opening on Wall Street. Japan's blue chip Nikkei, and the broader Asia equity market rallied about 0.4%. The Republican-controlled House of Representatives is due to vote later on Wednesday on a compromise that would restore funding to government agencies and end a shutdown that started on October 1. The Republican-controlled Senate approved the deal on Monday night. Michael Metcalfe, State Street's director of macro strategy, said that there was a risk if the shutdown continued. This would have affected growth and made it difficult to interpret data. "So the fact that the shutdown is finally over means that there won't be a significant slowdown in the growth due to the shutdown." Investors are weighing up whether the U.S. Federal Reserve is going to cut rates again in the month of December. ADP's latest weekly data on jobs showed that private employers lost an average of 11250 jobs per week over the last four weeks, ending October 25. The markets have priced in an approximate 64% chance of a Fed rate cut in December. Metcalfe said that the data must be soft enough for the Fed to reduce interest rates, but not so soft as to cause concerns about a slowdown. Japan's Topix index rose by over 1%, reaching a record high. SoftBank Group, however, bucked this trend by slipping 3.5%. This brings its total loss for the month to date up to 19%. Even after the recent drop, shares of Japan's largest tech sector investor are up more than twice this year. Watches YEN The yen fell to a nine-month low on currency markets at around 154.79 dollars before recovering slightly. This was after Japanese Finance Minister Satsuki Catayama stated that she would not deny the fact that the negative effects of the weaker yen have become more prominent than the positive. The market has been spooked by an overall risk-on sentiment, as investors are optimistic about the imminent end of the U.S. government shutdown and expect more fiscal generosity from the new prime minister, Sanae Takaichi. Chris Turner, ING's global director of markets, said that direct investment in the United States was one factor believed to be maintaining the dollar's higher value against the yen. In a note, he stated that "these potential flows have brought the dollar/yen up to psychological resistance of 155 where Japanese verbal interventions are picking up." Turner stated that "few will want to buy dollar/yen below 155 because they fear that it may easily rise to 160 on thinning markets at year's end and that the physical intervention of selling dollar/yen before 160 is unlikely to happen." The dollar index (which measures currency strength in relation to other major currencies) was 0.1% higher last week at 99.574, while the euro was stable at $1.1582. The sterling was slightly weaker around $1.3124, while UK government bonds showed a slight decline as politics returned to the forefront. Wes Streeting, the British health minister, denied that he plotted to topple Keir starmer after allies of Prime Minister David Cameron told newspapers they were worried about a coup attempt later this month following the budget. The oil prices weakened but maintained most of the gains made in the previous session, amid expectations that the U.S. government shutdown will end soon and boost demand for the world's largest oil consumer. Brent crude futures fell 29 cents or 0.3% to $65 per barrel, after rising 1.7% on Monday. U.S. West Texas Intermediate Crude was down 0.4% to $60.77 per barrel. Gold is now down 0.1% at $4,131.
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Gold prices steady before US House vote on reopening government
Investors waited for a House of Representatives vote to reopen federal government. This could provide clarity about economic data, and possible Federal Reserve rate reductions. As of 8:37 GMT, spot gold remained unchanged at $4,131.80 an ounce. U.S. Gold Futures for December Delivery rose 0.5%, to $4.137.20 an ounce. "Everyone awaits more clarity about the government shutdown, and when data will be coming from the U.S.A. again," said UBS Analyst Giovanni Staunovo. Gold prices are still on an upward trend. Staunovo said that nothing structurally has changed. Gold prices are up more than 57% in the past year, with a high of $4.381.21 reached on October 20. This is due to geopolitical tensions and economic concerns as well as the Fed's easing monetary policy. On Monday, the U.S. Senate passed a bill to restore federal funding following a government shutdown that set a new record. House lawmakers returned Tuesday to Washington to vote on a measure that could officially resolve the standoff. ADP, a payroll processor, reported on Tuesday that U.S. firms were cutting over 11,000 jobs each week until late October. The market's expectations have changed. CME Group's FedWatch shows a 67% chance of a rate cut of 25 basis points at the Fed meeting next on December 10. This is up from 62% just a day before. After a period of consolidation, gold prices have broken through the $4,050 level. This confirms the continuation of bullish momentum. The next resistance range is $4.160-$4.170/oz. A breach of this range would push the prices to the record high of 4.380/oz," ANZ stated in a report. In a note published on Wednesday, JP Morgan said that it expected central banks and consumers would emerge as reliable purchasers during price drops and predicted gold prices will exceed $5,000 in the fourth quarter 2026. Palladium rose 0.3% to 1,440.75 and platinum gained 0.4%. (Reporting and editing by Alexander Smith in Bengaluru, Anmol Choubey)
Ecotourism helps revive mangroves in a Filipino surfing location
Del Carmen Mangrove Reserve is a new Ramsar Site
Siargao is awash with illegal fishing and mangrove cutting
Ecotourism and behaviour change are key to protecting the mangroves
By Mariejo Ramos
He was once an illegal fisher, who cut down tropical woody trees for fuel. Now he protects them in a civilian patrol force.
We were forced to sell and cut mangroves because life was hard back then. "We couldn't find another job," Longos said.
Workers like Longos are now part of the solution because the local government has been working to provide job training and cultivate an ecotourism enterprise.
He proudly pointed out a mangrove baby he planted along the water.
The mangroves in the area were reduced for decades by destructive fishing techniques like dynamite use and illegal deforestation to make wood for bread or charcoal.
According to the local authorities, through replanting, the Del Carmen Mangrove Reserve has grown from 4,200 ha of mangroves to more than 4,800 ha.
The Ramsar Convention on Wetlands (an international treaty named for the city in Iran, where it was signed, in 1971) that guides conservation of wetlands throughout the world, designated the reserve as a Wetland Reserve of International Importance in August 2024.
Longos patrols the mangrove reserve from its viewing platform, earning him an honorarium each month of 9,000 pesos ($158). He uses his fishing boat to give paid tours of the mangrove reserve in his spare time.
Del Carmen Mayor Alfred Coro says the stories of small town fishermen like Longos shows that even communities with limited resources can stop environmental destruction.
He said that gaining the support of people through education, ecotourism opportunities and training is more important than policing.
Coro said that for a long time, previous leaders in Del Carmen had been told it was impossible to persuade people to stop illegal mangrove harvesting and illegal fishing.
He said that it took a decade for them to convince people of the importance of mangroves and to stop using illegal methods.
He said that he was limited in financial resources and the majority of his efforts were done through dialogues between fishermen at their homes, as well as community-based campaigns to inform people about mangrove conservation.
The local government started the tours, and now they are run by fishing groups. The tour fee is divided between the fisherman and his group, which amounts to about 600 pesos per trip.
The town has been preparing for growth in tourism and development since last year when it was awarded the Ramsar certification.
In 2023, more than half a millon tourists will visit Siargao, the highest number ever recorded. They are attracted to the impressive waves and surf spots in the area, which have been popular since the 1980s, when the sport began gaining popularity.
SUSTAINABLE TOURISM
Researchers fear that more visitors to Siargao could put strain on the natural resources of the island and cause waste problems such as plastic and marine debris.
The Asian Development Bank found that an increase in Siargao waste is "attributable" to the surge of tourists.
The study found that sustainable tourism could be implemented to protect marine life and support local incomes.
Del Carmen's municipality has encouraged its residents to make money through eco-tours, and to take care of mangroves to ensure that tourism will support the community for a long time.
Longos, a fisherman from the Philippines, was taught about mangroves' science and encouraged to participate in campaigns and replantings for their protection. Coro said that when they first started, "they had doubts."
Since 2014, hundreds of illegal fishermen and mangrove cutters have become tourism operators. The town offers 100 ecotrips a day, says a local tourism official.
These tours are staffed by guides, boat captains, and assistants.
Coro said, "You can tell how much their lives have improved."
The mayor stated that developing alternative sources of income has ripple effects on the local economy.
Del Carmen, which was a town of the Philippines with the lowest level of income as a fifth-class municipality, became a third class municipality this year.
Local government data revealed that the average monthly family income in Del Carmen increased from 2,000 pesos (34.95 USD) in 2010 up to 17,000 pesos (297.05 USD) in 2024. The poverty rate also decreased from 69% to 21% in 2010.
The income of the town from tourism grew from 1.2 millions pesos (about $21,000) in 2020, to 9.2million pesos (about 160,381) by 2024.
Longos says that by fishing legally and guiding ecotours he has been able to send all four of his children to school.
Gina Barquilla said ecotours prevent overfishing, which may destroy mangroves habitats, because the income from tours encourages people to spend less money catching fish.
A Task for the Community
Barquilla said that mangroves in Siargao (a teardrop-shaped island) helped to protect the area from a powerful typhoon 2021. They also lessened the impact of strong waves and the rising sea level for coastal fishing villages.
She has spent more than 10 years educating illegal fishermen and mangrove cutters at home and chasing dynamite fishing boats on the sea, despite threats and harassment.
In rare cases, such as in February, fishermen have been arrested for using dynamite against schools of fish.
She said that the best strategy is to go out and educate the local communities about the importance of mangroves, conservation and science.
She and other ecotourism activists said that generations of families have survived off the money made from cutting mangroves. Therefore, educating youth is crucial, they said.
(source: Reuters)