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G20 Taskforce asks for global panel to address 'inequality crisis'
The G20 taskforce, established by the South African president Cyril Ramaphosa, has called for an international panel on inequality. They warn that extreme wealth disparities can disrupt democracy and lead to economic instability. Joseph Stiglitz is the chairman of the Extraordinary Committee of Independent Experts on Global Inequality. The report, commissioned by South Africa as part of its G20 presidency, found that since 2000 the richest one percent of the world's population has captured 41% of all new wealth. According to the World Inequality Lab, data shows that the poorest half of the population increased their wealth only by 1%. Stiglitz said that the situation is not only unfair, but also undermines social cohesion. It's a problem both for our economy and politics. In a press release, the taskforce stated that a panel on inequality would be modeled after the Intergovernmental Panel on Climate Change. The taskforce would monitor the causes and effects of inequality and provide insights to policymakers and governments. The report warns that countries with high levels of inequality, which account for 83% of the global population, are more likely than others to suffer from democratic decline. They cited "perfect storms" of global shocks, such as COVID-19 and the war in Ukraine, and trade disputes for escalating poverty and inequality. The authors noted that 1 in 4 people skip meals regularly and that the wealth of billionaires has reached its highest level ever. The G20's first taskforce on inequality is expected to make its findings known to the G20 leaders in Johannesburg, South Africa in November. The United States will take over the rotating G20 Presidency at the end this year. (Reporting and editing by Nellie Cawthorne, Andrew Cawthorne, and SiyandaMthethwa)
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Haddad, Brazil's Haddad, says $10 billion forest fund is 'possible in the first year'
Fernando Haddad, Brazil's Finance minister, said that mobilizing 10 billion dollars in public resources to the Tropical Forests Forever Facility would be an ambitious but "possible target" for its first-year. The TFFF is a flagship project for Brazil, as it hosts the COP30 Climate Talks. It aims to raise $125 Billion to support global conservation of endangered forest. Haddad, speaking on the sidelines a Bloomberg event held in Sao Paulo said that other nations might indicate contributions to the fund at the United Nations Climate Summit in Belem, Brazil next week. Haddad, a G20 member, said that if a few countries joined the initiative, we could start compensating nations who preserve tropical forests. This would include those with debts. Haddad refused to reveal the names of the countries who had expressed interest in contributing to this fund. The fund is aimed at raising $25 billion through governments and philanthropies, to attract $100 billion private sector. President Luiz Inacio Lula da Silva In September, the largest economy in Latin America announced that it would contribute $1 billion. It urged other nations to do the same so that the TFFF can be operational by COP30. Haddad stated that the Indonesian government had also agreed to contribute. The fund will be administered like an endowment, and countries will receive annual stipends depending on the amount of tropical forest they still have standing. Brazil's Finance Ministry released its October financial report. The World Bank agreed to be the financial manager and trustee for the TFFF. (Reporting and editing by Simon Jessop; Oliver Griffin and Marcela Ayres)
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US and Vulcan Elements sign agreement to boost rare-earth magnet supply
Vulcan Elements and the U.S. Government have formed a partnership to increase domestic production of rare earth magnets. This is the latest attempt to reduce reliance on China and secure the supply of vital minerals. Vulcan, a North Carolina-based company, said that it would build and run a 10,000-metric ton magnet facility in the U.S. in exchange for an equity stake. The Pentagon will invest $50 million and the Department of Commerce will invest $25 million under the Chips Act. The Pentagon's Office of Strategic Capital will provide a direct loan of $620 million, and private capital of $550 million. ReElement Technologies is a U.S. refiner of critical minerals and rare earths. It will receive an $80 million direct Loan from the Office of Strategic Capital, which will be matched with private capital, to expand its recycling capabilities. Rare earth magnets can be found in motors for electric vehicles, windmills, hard disks and medical devices such as MRI machines. Vulcan has agreed to purchase critical minerals from ReElement for five years starting in 2026. (Reporting by Dharna Bafna in Bengaluru; Editing by Sriraj Kalluvila)
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Exxon explores refinery upgrades to focus on higher-valued products
Exxon Mobil, a company executive said in an interview, is looking at other opportunities to renovate sites after launching operations this year at four new initiatives for refining and chemicals. Exxon Mobil CEO Darren Woods described the projects as part of a larger strategy to transform low-value feedstocks and chemicals into products that are more valuable. He said that upgrading existing refineries and diversifying the production will allow the company to maintain low investment costs and better withstand fluctuating demand and supply markets. Matt Crocker, Exxon's president of product solution, said in an exclusive interview conducted last Wednesday before the earnings report, "We are looking at our current facilities and finding opportunities to upgrade them so that we can provide high-valued products." As we look to the future, I see us doing more projects of this type. Exxon's third-quarter refining profits jumped 41% from the previous year to $1.8 billion, as refinery margins improved. The earnings of the chemicals segment fell by 42% to $515m from the prior year. In September, the top U.S. producer of oil began production at its Singapore complex to convert fuel oil and residue into base stocks. The company also started producing renewable diesel in Canada at the Strathcona Refinery and increased the low-sulfur production at the Fawley Refinery in the UK. Woods highlighted the Baytown refinery and chemical complex, another project in the company's strategy on Friday. "We have great opportunities with this asset base." Woods stated that we are pursuing these assets aggressively and with good returns. Exxon has set six projects for this year, including refinery and chemicals. Crocker stated that the remaining two projects - expanding the advanced plastics recycling, and manufacturing more thermoset - will still be launched by the end the year. Crocker also started operations at a major new petrochemical facility in China. This has led to a rapid increase in global capacity of petrochemicals, and put pressure on the industry margins. Crocker, despite the fact that the industry is at its bottom of the cycle right now, said it sees a return to a more robust market and is focused on long-term. He said: "There is a lot of growth in demand that's typically tied to the gross domestic product, and this fundamental hasn't shifted." Shruthi Vangipuram, Wood Mackenzie's senior research analyst in base chemicals, says that Exxon has an advantage over smaller crackers, which use more expensive naphtha. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
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Dollar up slightly after Amazon-OpenAI agreement
The dollar was near its three-month-high versus the Euro due to the waning expectation of hefty U.S. interest rate cuts. Amazon shares rose more than 4% after the multi-year, $38 billion Amazon OpenAI deal. As expected, the Federal Reserve cut interest rates last week. Jerome Powell, the Chair of the Federal Reserve, said that another rate cut in December is "not a certainty", contrary to what some investors believed. On Friday, some Fed officials expressed their dissatisfaction with the central banks decision to lower rates. Meanwhile, influential Fed Governor Christopher Waller argued for further policy easing in order to support a weakening labour market. The ongoing U.S. shutdown has prevented most economic data from being released in the United States. Investors are optimistic regarding AI and the progress made with China in regards to the trade truce. Adam Sarhan is the chief executive officer of 50 Park Investments, a New York-based investment firm. "The AI stocks and tech shares are up today, and everything else is down." He said that the "clear narrowing of leadership" was continuing in an obvious way. TRUMP'S TARIFS GO TO SUPREME CREEK Arguments are scheduled for Wednesday before the U.S. Supreme Court, which is examining whether President Donald Trump’s tariffs on global products are legal. Trump's tariffs will likely remain in place for a long time, regardless of the legal basis. The Dow Jones Industrial Average dropped 178.13, or 0.37 percent, to 47.384.74. The S&P 500 rose by 13.39, or 0.19 percent, to 6,853.36. And the Nasdaq Composite rose by 108.07, or 0.46 percent, to 23,833.03. The MSCI index of global stocks rose by 1.61 points or 0.16% to 1,007.84. The pan-European STOXX 600 rose by 0.07%. This week, investors will also be able to see more quarterly results for technology companies. Palantir Technologies, a data analytics company, is expected to release its report following the closing bell. Palantir's shares rose 2.8%. This week, Advanced Micro Devices (AMD) and Qualcomm will also report their results. Uber and McDonald's are due to make a statement. Megacap U.S. companies reported mixed results last week. Investors want to see a return from the capital expenditure on AI. DOLLAR GAINS AGAINST PRIMARY CURRENCIES The euro, after falling as low as $1.1500 against the dollar - its lowest since August 1 - pared its losses and traded down 0.13% to $1.1519. The Institute for Supply Management reported that U.S. manufacturing shrank for the eighth consecutive month in October, as orders were subdued and materials took longer to arrive at factories due to tariffs on imported products. The dollar index (which measures the greenback in relation to a basket currency) rose by 0.07%, reaching 99.87. The dollar gained 0.14% against the Japanese yen to reach 154.21. The pound fell 0.08%, to $1.314, before the Bank of England's rate decision due later this week. Bitcoin, the cryptocurrency, was down by 2% to $107 486. The yield on the benchmark 10-year U.S. notes increased 1.1 basis points from late Friday to 4.112%. U.S. crude oil rose 7 cents, settling at $61.05 per barrel. Investors digested the news that OPEC+ intends to stop its supply increases.
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Peru's Upland contests disqualification for relaunching of top Amazon oilfield
After being disqualified a few days ago, Upland Oil and Gas, formerly Peru's biggest Amazon oilfield, said it would request that the South American country's regulator review its application for operating in Block 192. Perupetro, the state agency, disqualified Upland for not demonstrating financial capability. However, Upland claimed it had sufficient capital to reinvest and resume exploitation. Local Indigenous communities have protested at the now-dormant block, demanding that it be remedied for the extensive damage done to the forest, soil and waters around. Block 192 is near the Ecuadorian border and is considered crucial to supplying Petroperu's Talara refinery, which has been battling a debt crises following the expensive modernization. Perupetro's commission found late last week that Upland's financial solvency was insufficient to "prove its economic and financial capability to assume 79% the license contract for Block 192". Upland Oil and Gas responded to a press release by saying that they have sufficient capital and funding to meet the investment program set forth by Perupetro, despite finding it excessive. It said that it would be willing to offer a credit line for the state-owned oil company. Petroperu is a minor partner in this block and has said that it expects crude oil production from the reserve to reach up to 12 000 barrels per day. Upland stated that "this important asset has been paralyzed in Peru for over five years. The government has lost more than one billion dollars in taxes and royalties." Formerly the largest city in Peru Leakage Block 192 was halted in its production largely due to oil spills that contaminated the topsoil of the Amazon River, the native plants, and the streams.
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Gold prices steady as attention shifts to US payroll data
Investors hunkered in for the U.S. payroll data that is due this week, to gauge the likelihood of another U.S. Federal Reserve rate cut. By 1:32 pm, spot gold had not changed much from $4,002.35 per ounce. ET (1832 GMT). U.S. gold futures for December delivery settled 0.4% higher at $4,014. Edward Meir, Marex analyst, said: "Gold is carving out a range of trading. It could be in the high 3,000s to mid-4,000s. This is expected consolidation following such a large move." Metal, which gained 53% in this year, is down over 8% since the record high reached on October 20, 2008. Investors will be watching the ISM PMIs and ADP U.S. Employment data this week for clues about the Fed's future policy. The U.S. shutdown of the government has prevented the release of important economic data. This includes the Bureau of Labor Statistics. Last week, the central bank cut interest rates again this year. But Chair Jerome Powell stated that another cut was not "a foregone decision" this year. The traders now price a 65.3% probability of a December rate cut, down from an almost certainty last week prior to the Fed meeting. Gold that does not yield a return is more popular when interest rates are low or in economic times of uncertainty. "Gold's pause looks like a breather and not a collapse." The short-term decline can be explained by seasonal softness, temporary Chinese policies, and a stronger dollar, but this does not change the long-term story, according to Ole Hansen of Saxo Bank's head of commodity strategies. China has ended its long-standing policy of tax exemption for certain gold retailers, which could set back the buying spree in the world's largest consumer market. Other than that, silver spot fell by 0.8% at $48.25 per ounce. Platinum was down 0.2% to $1,564.30, and palladium rose 0.4% to $1439.86. (Reporting from Noel John in Bengaluru and Pablo Sinha; additional reporting by Kavya Baliaraman; editing by Leroy Leo, Vijay Kishore and Leroy Leo)
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Guinea's former junta chief to run for President
Mamady Doumbouya, the leader of Guinea's junta, announced his candidacy for the December 28 presidential election. This could extend his reign in power by another five years. Doumbouya had promised not to run for office when he took power in the West African nation in 2021. A new constitution, pushed by the military junta in September and approved by a referendum, opened the way for his candidacy. The new charter replaced the arrangements made after the coup, which had prohibited members of the junta to contest elections. Candidates must also live in Guinea, and have a minimum age of 40 to 80 years. This would exclude two powerful candidates: former president Alpha Conde (87), who lives abroad and former Prime Minister Cellou Dalein Diallo (73), in exile due to corruption charges that he denies. Others, such as former foreign minister Hadja Makale Camara and former prime minister Lansana Kouyate, have also submitted their applications. Simandou, in Guinea, is the site of the largest untapped bauxite deposits and the richest iron ore deposit. Reporting by Guinea Newsroom; Writing by Ayen deng Bior; editing by Andrew Heavens
MORNING BID AMERICAS-Government shutdown and tariff fears container year-end markets
A look at the day ahead in U.S. and global markets from Mike Dolan
U.S. federal government shutdown worries and fresh trade war risks cast another cloud over Wall Street as a bruising last full trading week of the year ends and dampens what had been a stellar year for U.S. stocks.
Already hit by what was seen as a 'hawkish cut' in Federal Reserve interest rates on Wednesday, where the central bank lifted both its 2025 policy rate and inflation forecasts, the S&P 500 was in the red once again late Thursday and futures were down practically 1% before Friday's bell.
A costs backed by Donald Trump failed in the U.S. Legislature late Thursday as dozens of Republicans defied the President-elect, leaving Congress with no clear plan to prevent a fast-approaching federal government shutdown that might disrupt Christmas travel.
Government funding is because of end at midnight on Friday. If lawmakers stop working to extend that deadline, the U.S. federal government will begin a partial shutdown that would interrupt funding for everything from border enforcement to national parks and cut off incomes for more than 2 million federal workers.
Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Financial obligation Ceiling. Without this, we need to never make an offer, Trump said on social networks.
The mix of Fed hawkishness and government financing concerns sent out long-term Treasury yields to their highest since May, with the 10-year benchmark coming close to 4.60% - a climb of practically 50 basis points in simply two weeks.
Tracking the climb in yields, the dollar index struck its greatest in 2 years on Thursday.
With November inflation readings from the Fed's favored individual intake expenditures gauge due out on Friday, Treasury yields and the dollar stepped back a notch.
However the cost of purchasing insurance coverage against a potential U.S. sovereign default crept higher on Friday due to the shutdown worries. Credit default swaps on six-month U.S. expenses nudged as much as a four-week high of 11 bps, according to S&P Global.
Japan's yen strengthened somewhat as information revealing accelerating core Japanese inflation kept speculation of a new year rates of interest hike from the Bank of Japan alive.
Leading Japanese financing officials also said on Friday the government is alarmed by recent forex relocations and is all set to intervene if speculative relocations were considered extreme, as the yen resumed its quick slump.
The cautions came as lots of emerging economy reserve banks from Brazil to South Korea intervened in current days to stop the dollar's steep rise.
A retreat of U.S. petroleum rates back below $70 per barrel also offered some solace for inflation worriers.
However Trump's other broadsides on Thursday struck overseas stock markets as financiers close out the year parsing what his brand-new administration will do when it takes workplace next month.
European shares were on course to post their worst week in 3 months on Friday after the President-elect cautioned of trade tariffs on the European Union.
Trump stated that the EU needs to acquire U.S. oil and gas to offset its tremendous deficit with the world's biggest economy. Otherwise, it is TARIFFS all the method!!!, he added.
The pan-European STOXX 600 index fell 1.1% to its least expensive in almost a month and was on course for its biggest weekly decrease given that early September.
And trade war and rate of interest concerns saw stocks fall throughout Asia too.
Sterling was another big loser on Friday, falling to its lowest considering that May versus the dollar. Although the Bank of England held its interest rates consistent as expected on Thursday, the 6-3 split amongst its policymakers showed 2 more council members in favor of a cut than had actually been assumed.
Contributing to the pressure, Friday data revealed British retail sales rose by a weaker-than-expected 0.2% in November.
Back on Wall Street there was much better business news to absorb, with shares in FedEx jumping 8% in out of hours trading after the delivery company revealed the much-anticipated spinoff of its freight trucking division as it reorganizes its operations.
Secret developments that must offer more direction to U.S. markets in the future Friday: * US November individual intake expenditure (PCE) inflation gauge, December University of Michigan home belief survey * U.S. business revenues: Carnival
(source: Reuters)