Latest News
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Gold Reserve files to disqualify Elliott's bid for Citgo parent
Gold Reserve filed a motion on Wednesday to disqualify an opposing bid by an affiliate of Elliott Investment Management, which a Delaware court selected this month as the frontrunner in an online auction for Citgo Petroleum’s parent. The auction of PDV Holding (parent of Venezuelan refiner Citgo) was overseen by a court officer who determined that the winning bid in the competition was a $5.86-billion offer made by Elliott affiliate Amber Energy, despite his recommendation in July of a $7.4-billion bid from a group headed up Gold Reserve subsidiary Dalinar Energy. The officer will now have to submit a fresh recommendation by Friday. This will be reviewed by Judge Leonard Stark in the next month. Gold Reserve stated in its motion to strike that the determination that Amber Energy's bid was superior was "contrary to this court’s orders and discards the bid procedures on which Gold Reserve, other parties, and the attached judgment creditors relied upon, and threatens short-changing the attached judgement creditors by $1.5 Billion relative to Dalinar Energy’s $7.382 Billion bid." Amber offers a settlement to holders of Venezuelan bonds that have defaulted, which would release a claim of $2.86 billion. According to its website, Gold Reserve, a Canadian-listed company is focused on managing and monetizing legal and arbitral claim collections after its mining assets in Venezuela were expropriated. Gold Reserve's attorneys told the court in August that they would invalidate Amber's bid, claiming it did not comply with certain bidding conditions. A motion to strike in a court-organized sale is a request for invalidation or removal of a bid, challenging a particular aspect of the auction process. It does not challenge the entire auction. In January, the complex auction to pay 15 creditors for defaults on debts and expropriations of Venezuela and its oil company PDVSA has been relaunched. The year-long auction process that included Amber's bid last year ended in chaos due to the objections of creditors. (Reporting and editing by Nathan Crooks, Jamie Freed, and Marianna Pararaga)
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S&P 500 closes at record high, dollar gains; Nvidia shares fall after the bell
The S&P 500 closed at a record high on Wednesday, ahead of the quarterly results for artificial intelligence leader Nvidia. Meanwhile, the dollar rose slightly after its previous session's decline despite concerns over the independence of the U.S. Federal Reserve. After Donald Trump said that he would dismiss Lisa Cook, Lisa Cook's lawyer said she would sue him. Investors were concerned by Trump's remarks about the independence and stability of the U.S. Central Bank. The yield curve steepened, as traders assessed the possibility that Trump could make more dovish Fed appointments. The dollar was flat or slightly higher after its drop in the previous session. The dollar index rose 0.02% to 98.227. Meanwhile, the euro reached its lowest level since August 6, and fell 0.09% to $1.1631. Three major U.S. stocks indexes closed higher. Nvidia shares fell about 3% after the closing bell even though the company's forecast for third-quarter revenues was above Wall Street expectations. The strong performance of a number technology-related companies exposed to AI has helped propel major equity indexes into record highs. This is seen as a test for the AI optimism which has driven markets. Nick Frasse is the product manager of Vaneck Associates, a New York-based company. He said: "It is not surprising that Nvidia's numbers have increased, nor has this reaction." He added that the market had begun to take into account how Nvidia could continue to exceed expectations despite headwinds, and questions about what they would have to pay in order to continue selling in China. In exchange for export licenses that are not defined, the company has agreed to pay 15% of its sales in China to the U.S. government. Investors have noted that technology shares, including some AI leaders, are tumbling this month. The Dow Jones Industrial Average gained 147.16, or 0.32 percent, to 45.565.23, while the S&P 500 rose 15.46, or 0.24 percent, to 6,481.40, and the Nasdaq Composite climbed 45.87, or 0.22 percent, to 21,590.14. Investors are closely monitoring the political risks in France. European stocks have recovered slightly from their previous day's drop. French assets were sold off on Tuesday due to concerns about the possible collapse of Prime Minister Francoise Bayrou's French government next month. The MSCI index of global stocks rose 0.32 points or 0.03% to 953.04. The pan-European STOXX 600 Index rose by 0.1%. Market watchers have interpreted Fed chair Jerome Powell's remarks at the annual Jackson Hole Symposium last week as an indication that interest rate cuts may be coming. Fed funds futures are pricing 84% odds that a rate cut will occur in September according to CME Group’s FedWatch Tool. The outlook for U.S. rates is still dependent on the strength of the labor market and inflation trends. The yield on two-year notes was at its lowest point of 3.625%, a drop of around 5 basis points in a single day. The benchmark 10-year yield dropped to 4,236%, its lowest level since August 14. The yield curve between 2-year and 10-year bonds was at its steepest on April 22. It reached 63.5 basis points. Oil prices rose on the back of a drop in U.S. oil inventories that was larger than expected. U.S. Crude Futures rose 90 cents, settling at $64.15 per barrel. Brent futures gained $83 cents and settled at $68.05. Spot gold increased 0.12% to $3.396.34 per ounce.
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Hudbay Minerals, a Canadian company, resumes operations at Snow Lake following the lifting of evacuation orders
Hudbay Minerals, a Canadian mining company, announced on Wednesday that it had resumed its operations in Snow Lake (Manitoba) following the decision by authorities to lift the mandatory evacuate order on August 22, Snow Lake surface infrastructure, according to the company, has not been damaged structurally. Hudbay temporarily suspended Snow Lake operations early in July because of a wildfire that raged in Northern Manitoba. Manitoba declared an emergency in late May, and advised thousands of people to evacuate from the northern and eastern areas of the province as wildfires spread across central and western Canada. Last week, officials from the federal government said that Canada's second worst wildfire season in history has already burnt 7.8 million acres and could continue to do so for several weeks. Since the lifting of the evacuation orders, the company has added that it has completed a safety review of infrastructure including an inspection of the shaft and restarted underground electrical infrastructure. Hudbay is on track to meet its 2025 forecast in Manitoba, despite wildfires. (Reporting from Bengaluru by Pooja menon; editing by Vijay Kishore).
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Iraqi Kurdish PUK Security Force Alleges a plot to kill Party Leader
The Patriotic Union of Kurdistan in Iraq's semiautonomous Kurdistan Region said that on Wednesday they had discovered a plot against PUK leader Pavel Talabani. They shared a video purporting to show six guards claiming they received an order to murder him. A PUK-affiliated Kurdistan security service broadcast the video in which the fighters described their plans to rent a flat in a highrise building close to the PUK leader’s headquarters. The footage showed snipers holding silencers near a window that overlooked the office of the PUK leader. The guards on the video claim that they were given their orders by Lahur Talabani. Lahur Talabani is a prominent Kurdish political figure who is the cousin and leader of the People's Front, the party of opposition to Pavel Talabani. The office of Lahur Talabani was not immediately accessible for comment. A member of People's Front has accused the PUK using security and judicial institutions to suppress political opponents. Lahur Talabani, a fighter loyal to Lahur Talabani, was arrested by PUK forces on Friday after they raided an hotel in Sulaymaniya on Thursday night and fought for four hours. Three PUK commandos, as well as two Lahur Talabani fighters, were reported dead by police and hospital sources. According to security officials, more than 160 Lahur Talabani loyalists have been detained with him. Officials from the Sulaymaniya court confirmed that a warrant had been issued for Lahur Tallahani on charges of destabilizing security in the city and attempted murder. Sources familiar said that the arrest was part a larger struggle to control Sulaymaniya. This is a stronghold for the PUK. Lahur Talabani had been the joint president of PUK before a power battle led to his removal in 2021. The representative of the People's Front, who spoke under condition of anonymity for fear of arrest, said that "deploying tanks and hundreds armored cars to arrest a leader of a political party is completely unrelated to legal methods or democratic methods." This is the most serious conflict between Kurdish groups in Iraq since Saddam Hussein's fall in 2003. Regional officials and analysts are concerned that the violence could threaten the relative peace enjoyed by Iraq's semiautonomous Kurdish Region, which had largely been insulated from other areas of unrest in the country. (Reporting and editing by Rosalba o'Brien, Ahmed Rasheed)
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Dollar recovers as stocks climb in anticipation of Nvidia results
The major stock indexes rose Wednesday, ahead of artificial intelligence leader's results Nvidia The dollar has recovered from its previous session's decline despite concerns over the independence of the U.S. Federal Reserve. Lisa Cook's lawyer said that she would sue Donald Trump for threatening to fire her after Trump said he was going to do so. Investors were concerned by Trump's remarks about the independence and stability of the U.S. Central Bank. The yield curve steepened, as traders assessed the possibility that Trump could make more dovish Fed appointments. The dollar recovered from its previous session's drop and closed the day up 0.36% to 147.93 Japaneseyen. Meanwhile, the euro fell 0.48% to $1.1586. The three main U.S. indexes are slightly higher. Nvidia's report on the second quarter, which is due after the closing bell today, will be a test for the AI optimism, which has driven markets in the last couple of years. The strong performance of a number technology-related companies exposed to AI has helped propel major equity indexes this year to new highs. "Trump's been on the Fed’s back from Day One and this (Cook's firing) is a continuation to that strategy." Jake Dollarhide is CEO of Longbow Asset Management, Tulsa. Investors wonder if Nvidia will be able to continue to meet Wall Street's expectations. "My expectation today is that it will." Nvidia shares last fell 0.1%. According to LSEG, the company will report that its second-quarter revenues jumped up to $46.06 Billion. Investors will be paying close attention to the business it has in China, after the company agreed with the U.S. government to pay 15% of sales in exchange for export licenses which are not defined. Investors have noted that technology shares, including some AI leaders, are tumbling this month. The Dow Jones Industrial Average rose by 190.54, or 0.4%, to 45.608.19. The S&P 500 gained 20.02, or 0.3%, to 6,486.06, and the Nasdaq Composite climbed 55.61, or 0.2%, to 21599.98. Investors are closely monitoring the political risks in France. European stocks have recovered slightly from their previous day's drop. French assets were hit by a sell-off on Tuesday due to concerns over the potential collapse of Prime Minister Francoise Bayrou's French government next month. The MSCI index of global stocks rose by 1.64 points or 0.17% to 954.36. The pan-European STOXX 600 rose by 0.1%. Market watchers have interpreted Fed chair Jerome Powell's remarks at the annual Jackson Hole Symposium last week as an indication that interest rate cuts may be coming. Fed funds futures are pricing 84% odds that a rate cut will occur in September according to CME Group's FedWatch Tool. The outlook for U.S. rates will likely still depend on the strength of the labor market and inflation trends. The yield on two-year notes was at 3.625% last, down about five basis points for the day. The benchmark 10-year yield dropped to 4,236%, its lowest level since August 14. The yield curve between the two-year and 10-year note was at its lowest point of 61.3 basis points. It had reached 63.5 basis points earlier, which is the steepest since March 22. Gold and oil prices both rose. The price of oil rose on the back of a drop in U.S. crude stocks that was larger than expected. U.S. crude gained 90 cents and settled at $64.15 per barrel. Brent gained 83-cents to settle $68.05. Spot gold increased 0.09%, to $3.395.33 per ounce.
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KoBold Metals awarded seven Congo Lithium exploration permits
KoBold Metals - the mining company owned by U.S. billionaires Jeff Bezos & Bill Gates - has been granted seven permits for the search of lithium and other minerals within the Democratic Republic of Congo. This was announced on Wednesday. In July, the Central African nation signed a contract with KoBold that allowed it to begin a large-scale exploration program for minerals. KoBold also acquired Manono, a lithium deposit that is considered to be one of the largest in the world. A company official said that "our exploration efforts will be centered on lithium" across the seven new licenses. Four of the permits, according to the data on the website of the mining registry, are located within the Manono territory, in Tanganyika Province, and three are in the Malemba Nkulu Territory, in Haut-Lomami Province. Licenses are available for exploration of a dozen minerals including lithium, coltan and rare earths. The Manono Lithium Deposit is the subject of a dispute between AVZ Minerals and the Congolese Government over the failure of the authorities to grant a mine permit. (Reporting and writing by Jessica Donati, Sonia Rolley and Anait Miridzhanian. Editing and reviewing by David Goodman, Rod Nickel and Rod Nickel.)
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Europe's STOXX 600 closes at a higher level, with the focus now on Nvidia results
Investors waited for earnings from Nvidia, the leader in artificial intelligence chips and political risks in France to see if Europe's STOXX 600 would recover on Wednesday. The pan-European STOXX 600 closed 0.1% higher, just a day after it registered its biggest drop in almost a month. The majority of regional bourses closed in red, however. The CAC 40 in France bounced back by 0.4% after a sell-off that sparked fears of a possible collapse of the government headed by Prime Minister Francois Bayrou next month. Three major opposition parties announced on Monday that they would not support Bayrou's plans to cut the budget, as he had announced in his confidence vote for September 8. If the government falls apart, President Emmanuel Macron can name a new premier immediately, or ask Bayrou to remain as leader of a caretaker administration, or call a snap general election. Christophe Hautin is the equity portfolio manager of Allianz Global Investors. He said: "A lot has been priced in already, especially for French names... French banks and utilities, business services. But I expect uncertainty to continue for the next couple of weeks." Investors await earnings from Nvidia - the world's largest company - for new cues about the AI trade after a blistering tech stock rally hit a bump in August. The European corporate earnings are resilient, with over 52% of companies reporting second quarter earnings to date exceeding analyst's estimates. Nicholas Brooks is the head of ICG's economic and investment research. He said that investors want to know how tariffs and uncertainty in the last few months has affected business confidence. Sectoral losses were led by heavyweight banks, which fell 1.3%. After a Goldman Sachs rating downgrade, shares of Germany's Deutsche Bank, Commerzbank and HSBC fell by 3.4%, 4.9% and 5.9% respectively. The personal and household products sector, on the other hand, gained 1.5%. Luxury stocks were the main drivers, and the index hit a new high. Swatch gained 6.3% to lead the STOXX 600 after its CEO stated that the company would be able to meet the demands of the future. Partly offset Analysts said that the U.S. tariffs would have an impact on prices. DiaSorin dropped 5.8%, the highest on STOXX600, after J.P. Morgan Coverage initiated The Italian Medical Diagnostics Group at "Underweight" JD Sports' stock rose by 3.6% as a result of improved sales in the U.S.
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Ukraine launches tender for Lithium Deposit Site in Kirovohrad Region, PM says
Yulia Shvyrydenko, Ukraine's Prime Minister, announced on Wednesday that the country has begun a public tender to acquire the rights to mine a deposit of lithium in Kirovohrad. The tender for "Dobra" is expected to represent the first project of a joint fund of investment with the United States, which was signed in April in Kyiv as part Kyiv’s efforts to keep Washington in line in its war on invading Russian troops. The U.S. has a preferential deal with Ukraine on new mineral deals, and can invest in Ukraine's reconstruction. This is a deal that was heavily promoted by U.S. president Donald Trump. Svyrydenko posted on Telegram that the site contained significant lithium reserves, which are of strategic importance to energy and technology. We are searching for an investor that will not only ensure extraction but also development of value added production in Ukraine. She stated that an official announcement will be made in the next two month, followed by a period of three months for bids to be accepted, and finally a decision on the winner. Ukraine's Economy Ministry said on its website the winning bidder would sign a contract for 50 years and commit to invest at least $179 millions. The document stated that the amount included both funding for geological research and production and enrichment. The agreement also stipulates the compliance with environmental standards and the use of Ukrainian products and labour as well as investment in the local communities. (Reporting done by Yuliia Dyesa and Max Hunder. Toby Chopra, Mark Potter and Toby Chopra edited the story.
The dollar is struggling to find direction
The dollar was unable to gain any ground on Wednesday due to growing Federal Reserve expectations of rate cuts. Investors were looking at weak U.S. economic data and warnings from corporations about the impact of tariffs.
The EUROSTOXX futures are up 0.5%, indicating that European stocks will open higher. Novo Nordisk, a maker of wegovy, reported a second-quarter growth in sales of 18%. This was below the initial expectations by analysts.
Nasdaq and S&P futures both rose 0.4% after a dip. After the bell, shares of AI chip maker Advanced Micro Devices fell 6.6% on disappointing data center revenue.
Analysts at BlackRock Investment Institute said: "We see risky assets as a tug of war between strong U.S. earnings, fueled by the artificial-intelligence (AI) theme and tariffs that hurt growth but raise inflation."
We remain overweight U.S. stock but become more granular in assessing the impact of tariffs.
Overnight, U.S. stock prices finished lower following the unexpected stagnation of services sector activity in July. Input costs and employment have risen by nearly three years. This highlights the impact of President Donald Trump’s tariff policy.
Tariffs are beginning to impact U.S. earnings, even though they were generally positive in the second quarter.
Taco Bell's parent company Yum Brands missed its expectations due to steep trade duties that impacted consumer spending. Caterpillar also warned of a cost of up to $1.5 Billion this year from U.S. Tariffs.
In Asia, MSCI’s broadest Asia-Pacific share index outside Japan fell by 0.1% while Japan’s Nikkei rose 0.6%. Australia's resource shares rose by 0.8%.
The Hang Seng Index in Hong Kong and the blue chips of China both rose by 0.1%.
Trump said on Tuesday that he would announce tariffs for semiconductors and chips within the next few weeks. The U.S. will initially impose a'small tariff' on pharmaceutical imports, before it increases it significantly in the following year or two.
He said that the U.S. and China were close to a deal on trade, and if one was reached he would be meeting his Chinese counterpart Xi Jinping by the end of the calendar year. He threatened to increase tariffs on Indian goods over their Russian oil purchases.
The Reserve Bank of India held its key interest rate at 5.50%, as expected, on Wednesday. However, the chances of another reduction have increased after the U.S. imposed steep tariffs on Indian imports last week.
On the currency markets, after a disappointing jobs report last Friday that caused markets to price in an almost certain chance of a Fed rate cut in September, the dollar has stabilized.
The dollar index (which measures the U.S. Dollar against six counterparts) was unchanged at 98.73 this week, after Friday's fall of 1.4%.
FedWatch from the CME shows that Fed funds futures indicate a 94% probability of a rate reduction next month. At least two cuts are priced in this year.
Investors await Trump's choice to fill the upcoming vacancy at the Fed Board of Governors. Trump announced that a decision would be made shortly, but ruled out Treasury Secretary Scott Bessent, who is currently the Fed Board of Governors' chief and whose tenure ends in May 2026.
Treasury yields rose after a $58 Billion auction of 3-year notes failed, but they remained near their multi-month lows. This week, the market will see more supply with $42 billion of 10-year notes and $25 billion of 30-year bonds.
The yields on two-year Treasury bonds rose by 2 basis points, to 3.7323%. They had risen by 3.5 basis points overnight. Meanwhile, the benchmark 10-year bond yields increased 3 bps, to 4.2217% after remaining unchanged overnight.
Oil prices have risen on commodity markets after four consecutive sessions of declines. U.S. crude oil rose 0.6% to $65.57 a barrel while Brent crude was up 0.6% at $68.07 a barrel.
Trump said Tuesday that he would decide whether or not to sanction countries who purchase Russian oil following a scheduled meeting with Russian officials on Wednesday.
The spot gold price fell 0.3%, to $3.370 per ounce.
(source: Reuters)