Latest News
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Upgrade of Zimbabwe thermal plant to 400 Megawatts will add to grid
Zimbabwe will upgrade its Hwange coal fired power?plant for $455 mln, adding 400 megawatts, or a 'fifth' of the current country electricity demand. Southern Africa has signed a concession agreement with Jindal Steel's Africa-focused unit for a 15-year period to refurbish some of its older units at the?thermal plant. Cletus Nyachowe, acting ZESA CEO, said that the deal was signed and finalised in December after it was approved by Zimbabwe’s cabinet on September 17. Nyachowe stated that the 15-year contract with Jindal would lead to increased power generation. This will?add 400 MW to our production within 48 months." He added that "Rehabilitation works are set to begin in the first quarter 2026." Zimbabwe is only able to meet half its electricity demand of 2,000 MW and suffers from?prolonged power cuts because its power plants are reducing in capacity. In 2023, two units, adding 600 MW, were commissioned at the Hwange plant. The older units, built in the 1980s, are only operating at a third of their full capacity because of?breakdowns. In 2018, the Kariba hydropower plant, built in 1960, underwent a 300-MW upgrade, boosting its capacity from 750 MW to 1,050MW. Its generation capacity also decreased in recent years due to climate-change-induced droughts.
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Silver falls from its $80 peak, while gold's price softens due to profit-taking
Silver fell after reaching a record high of $80 per ounce on Monday, while gold dropped from near-historic levels as investors booked profits. A market perception that geopolitical risk had decreased also curbed the safe haven buying. Gold spot was down 1.9% to $4,448.23 per ounce at 1148 GMT. It had hit a record of $4,549.71 an ounce on Friday. U.S. Gold Futures for February Delivery lost 1.9% at $4,467.90. Spot silver fell?5.4%, to $74.90 per ounce. This is a retreat from the record high of $83.62 reached earlier in this session. Spot 'platinum' fell 6.5%, to $2,291 per ounce, after reaching a record high of $2,478.50, while palladium dropped 13%, to $1,674.25 per ounce. Ricardo Evangelista, an analyst at ActivTrades, said that the decline in gold prices this morning, following record highs, was primarily due to traders reinvesting profits before year-end. "Tentative optimism on the part of the U.S. administration regarding progress in?Ukraine's peace talks is also a mild blow." Donald Trump, the U.S. president, said that on Sunday he and Ukrainian leader Volodymyr Zelenskiy are "getting closer, perhaps very close" to a deal to end Ukraine's war. Bullion prices have risen by 72% in the last year. This is due to factors like a softer U.S.?monetary policy, a weaker dollar, geopolitical tensions, and robust central bank purchasing. Silver has outperformed gold this year by 181%, mainly due to its designation as an important mineral in the United States, shortages of supplies and a growing industrial and investor appetite. The release of the Fed minutes from the December meeting, which is due on Tuesday, will provide some clues about the future interest rate outlook. The market is pricing in at least two rate cuts next year. When interest rates are low, non-yielding investments tend to perform well. UBS analysts stated in a report that "gold prices are trading at an elevated premium and downside risks may emerge if the Federal Reserve makes a surprise pivot to the hawkish side and/or if large ETF withdrawals affect the market." Reporting by Pablo Sinha, Bengaluru Editing Barbara Lewis and David Goodman
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Axis International wants $28,9 billion from Guinea for revocation of bauxite permits
Axis International Ltd, based in the United Arab Emirates, is seeking $28.9billion from Guinea through a World Bank Tribunal after Guinea revoked its permit to operate a mine of bauxite there earlier this summer. Guinea, which has the world's largest reserves bauxite and is seeking to increase revenues and local processing, has tightened state control of the mining sector over the last year, revoking some permits and reallocating others. These moves by the government led by coup leader 'Mamady Doombouya' have led to several arbitration challenges. One was filed by Nomad Bauxite Corporation in November and another by Nimba Investment LLC this month. Axis International stated in a Monday statement that "if Guinea fails to pay compensation or refuses participation, it risks losing donor support multilaterally and access to the financial markets." The dispute was brought before the?International Centre for?Settlement of Investment Disputes of the World Bank. The government of Guinea did not respond immediately to a comment request. Axis International is the owner of 85% Axis Minerals Resources SA. This Guinean company has rights to a Boffa region bauxite mining. In a statement, the company stated that this permit along with others was terminated on May 1. Axis International stated that, while the government claimed that the mine wasn't operational or underutilised it was "operating at a scale and supporting thousands and their families." "We will prove to the World Bank Tribunal that Guinea is responsible for all damages caused by its intentionally unlawful acts. Gunjan Sharma, counsel for Axis International said that the amount was USD 28,9 billion at minimum. The company stated that damages were calculated based on "proven reserves", which they put at over 800 million metric tonnes. The company stated that the mine would produce 18 million metric tonnes of bauxite by 2024. This will make it Guinea's largest source of bauxite exports. (Reporting and writing by Robbie Corey Boulet; Editing and proofreading by Jan Harvey).
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Before reversing gains, copper spikes reach a record of $13,000
On Monday, copper prices spiked to an all-time high of just $13,000 per metric ton. The London market was racing to catch up to gains in China and?the?US. While?it was closed Friday. LME copper prices have risen by 41% in the past year. This is due to fears of shortages, a weaker dollar and gains on other financial markets. The benchmark three-month copper price on the London Metal Exchange soared 6.6% in Asian trading to a record of $12,960 per ton, but then fell to $12,415 (up 2.1%) by 1030 GMT. The Shanghai Futures Exchange, the U.S. Comex and the London Metal Exchange all saw record-high copper prices on Friday. Robert Montefusco, broker at Sucden Financial, said that "Comex led Boxing Day". U.S. Comex copper futures rose to $5.8395 a lb. on Friday. This is a record that was surpassed on July 23, when the planned date of U.S. Tariffs neared. The imposition of U.S. Tariffs on refined copper did not have any impact. However, this decision will be reviewed next year and a new flow of copper into the U.S. in order to benefit from higher prices. Many analysts have forecast deficits for next year due to the pile-up in copper prices in the U.S. Metals prices rose as a result of a wider risk-on attitude, with global equity markets on course to reach record highs by 2025 and oil prices on the rise. The most active contract for copper on SHFE reached a record high of 102660 yuan per ton. Daytime trading closed up 0.8%, at 98860 yuan (about $14,105.33). The news that China will rein in its copper capacity in the next five year plan helped support gains on?SHFE. Nickel was up by 1.1% at $16,960, after reaching its highest level since April, at $16,025; tin fell 0.5% to $42,600.
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China's net gold imports through Hong Kong in November more than doubled compared to October
Hong Kong's Census and Statistics Department reported on Monday that China's net imports of gold via Hong Kong rose 101.5% in November compared to October. Why it's important China is the world's largest gold consumer. Its buying activities can have a significant impact on?global?gold markets. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The net imports from Hong Kong into China in November were 16.16 metric tonnes, up from 8.02 tons for October. China's total gold imports via Hong Kong in November increased by 0.5% compared to 30.08 tonnes in October. KEY QUOTE "During November we saw a great deal of volatility in the domestic Chinese premiums. They went from a modest premium to an important discount, which indicates a very mixed sentiment," according to independent analyst Ross Norman. Gold imports are typically higher in the months leading up to the Lunar New Year. CONTEXT China is the top consumer of bullion Gold prices reached record highs last week and gold was sold at discounts between $15 and $30 per ounce compared to the global benchmark price. This is the lowest discount in over five years. Discounts were offered in order to entice buyers amid a lacklustre retail demand. However, they narrowed last weekend as speculative purchases increased on the expectation of U.S. interest rate cuts. A tighter supply was also a result of limited import quotas, and a stronger yuan. China, however, continued to add gold to its reserves, increasing its holdings from 74.09 million fine troy pounds at the end October to 74.12 millions at the end November. Gold spot prices are up 72% in the last year. They reached a record of $4,549.71 per ounce on Friday. This is the largest annual increase since 1979. The rally was fueled by several factors including the Federal Reserve's policy easing, increased central bank demand, increasing ETF holdings and continued de-dollarisation. Reporting by Noel John in Bengaluru and Sherin Varghese, Kirsten Doovan. Editing by David Goodman.
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Silver falls from its $80 peak, while gold loses value on profit-taking
On Monday, silver retreated from a record high of $80 per ounce, while gold fell from historic levels. Investors booked profits as the perception of decreased geopolitical risk curbed safe haven buying. Gold spot fell 1.4% to $4,470.56 an ounce at 1017 GMT after reaching a record-high of $4,549.71 per ounce on Friday. U.S. Gold Futures for February Delivery lost 1.3%, to $4493.20 an ounce. Spot silver fell 4.8% to $75.32 an ounce after hitting a high of $83.62 earlier in the session. Palladium fell 13.2% to $1.669.11 an ounce after falling 6% from $2,478.50, the previous day's high. Ricardo Evangelista, a ActivTrades analyst, said that the price drop this morning, following record highs is primarily due to traders taking profit before year-end. The U.S. administration's tentative optimism about progress in the Ukraine talks is also a slight headwind. U.S. president Donald Trump stated on Sunday that the United States and Ukraine were "getting closer, perhaps very close" to a peace agreement. Bullion prices have risen by 72% this year on the back of factors like a softer U.S. dollar, geopolitical tensions, and central bank purchases. Silver has gained 181% in the past year, outperforming gold. This is due to its classification as a critical mineral for the United States, a shortage of supply, and a growing industrial and investor demand. The release of the Fed’s December meeting minute, which is due on Tuesday, will provide clues about the outlook for interest rates. Two rate cuts are expected next year, according to traders. In a low interest rate environment, non-yielding investments tend to perform well. UBS analysts wrote in a report that "gold prices are trading at a premium and downside risks may emerge if the Federal Reserve makes a surprise pivot to the hawkish side and/or if large ETF withdrawals affect the market." (Reporting from Pablo Sinha, Bengaluru. Editing by Barbara Lewis.)
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Kremlin: Ukraine should pull its troops out of Donbas. A call between Putin and Trump is expected shortly
The Kremlin stated on Monday that Ukraine must withdraw its troops from the part of Donbas it still controls, if it wants peace. If Kyiv does not strike a deal it will lose more territory. Putin and Trump spoke Sunday, ahead of Trump's Miami meeting with Ukrainian President Volodymyr Zelenskiy. Dmitry Peskov, Kremlin spokesperson, said that another call was planned for very soon. Peskov declined to comment on the idea that a "free economic zone" could be created in Donbas, or the future of Zaporizhzhia's nuclear power plant (controlled by Russia), saying the Kremlin deemed it inappropriate. Peskov, when asked about Kremlin aide Yuri Ushakov’s remarks regarding the decision?that Kyiv needs to?take against Donbas, said that Ukraine should remove its troops from those parts it still controls. Peskov stated, "We're talking about the removal of the regime forces from the Donbas." Peskov refused to give details when asked if the same applied to?Zaporizhzhia & Kherson. According to Russian estimates, Russia controls about a fifth (or a fifth) of Ukraine. This includes Crimea, which it annexed in 2014. It also controls 90% of Donbas and 75% of Zaporizhzhia and Kherson, as well as slivers from Kharkiv. Sumy, Mykolaiv, and Dnipropetrovsk. Russia claims Donbas and Zaporizhzhia as part of 'Russia, even though most countries believe that the regions are part of Ukraine. Peskov confirmed that no call between Putin and Zelenskiy is being discussed. Peskov's paraphrase of Trump's remarks about Ukraine losing more territory to Russia in the coming months without Kyiv striking a deal. (Reporting and writing by Dmitry Antonov, editing by Guy Faulconbridge).
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The Zaporizhzhia Power Plant could be restarted in 18 months after the war ends.
According to the head of Zaporizhzhia Nuclear Power Plant in southeastern Ukraine, if the conflict ends soon, the facility could resume power production by the middle of 2027. Ramil Galiyev, a Russian state news agency reporter, was quoted as saying: "If (this) (the end of conflict) occurs tomorrow, we'll be ready to?"start up by mid-2027." Since March '2022, when Russian troops overran much of the southeastern Ukraine, the?nuclear power plant has been under Russian authority. It is currently not producing electricity, but it relies on external energy to keep the material cool and prevent a meltdown. A team from the International Atomic Energy Agency is currently working at the plant to repair the power lines. The repairs should last a few days. Galiyev stated that "serious problems" would have to be resolved before the plant could go live, including replenishing cooling ponds and preparing rail tracks. Russia and Ukraine accuse each other of shelling nuclear plants, posing the risk of a nuclear catastrophe.
The French crisis is back, and so is the MORNING BID Europe
Ankur Banerjee gives us a look at what the future holds for European and global markets
The markets have chosen to temporarily ignore the Trump v Fed drama, and instead focus on the political crisis in France. This has led to a steep selloff of stocks and bonds for the second largest economy in the eurozone.
The gamble taken by Francois Bayrou, French Prime Minister Francois Bayrou to gain support for his unpopular plan of debt reduction has backfired Tuesday, causing the country's political and financial instability to worsen.
FRENCH WORRIES
Investors are keeping an eye on France’s blue-chip CAC40, which has dropped more than 3% in the past week. They will also be watching the banking stocks as they have taken the biggest hit.
The bond market's reaction is also crucial, after the gap between French 10-year yields and German 10-year rates, which measures the premium that investors need to pay to own French debt, increased on Tuesday to 79 basis points, its highest level since April.
We've been in this situation before. In 2024, France's last Prime Minister, Michel Barnier was ousted by a vote of no confidence over the budget after only three months, following a second snap election held in July.
The stock futures market and currencies were relatively calm during Asian hours, but the light economic calendar may cause political and fiscal concerns to take center stage.
The bond market is rumbling again, with the U.S. Treasuries Curve steepening. This comes after Donald Trump ordered the firing of Federal Reserve governor Lisa Cook on Monday. It was an unprecedented decision that could result in a legal battle. Cook plans to sue to stop her dismissal.
The markets are nervous, but they have largely shrugged off any attack on the Fed’s independence. In fact, the yield of the 30-year Treasury Note has not threatened to break 5%. This is what would be expected.
Investors may be complacent, or they might be waiting for institutional money to move away from U.S. assets. History tells us that everything is fine until it isn't. Look at Turkey.
NVIDIA
The earnings report of Nvidia on Wednesday will no doubt be the main event. It will determine the risk appetite for the near term and whether AI darlings' sky-high valuation is justified.
The fate of Nvidia China's business depends on the outcome of the ongoing trade war between Washington and Beijing. Investors will pay attention to this.
LSEG data revealed that the $4.4 trillion AI chips maker is expected to report a rise of 53% in its second-quarter revenue, to $46 billion. However, this may not satisfy investors, as the jump is still a long way from the triple-digit increases it has seen for many quarters.
This is the problem for a stock which has increased 35% in the past year and moves the market with every move. Options traders have priced in an increase of $260 billion to the market capitalisation of the company after the results.
The following are key developments that may influence the markets on Wednesday.
* Germany GfK consumer sentiment for September
(source: Reuters)