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After Russia sanctions, BGN CEO looks to petchem and Med growth for asset purchases.
BGN, a global commodities trader, sees the new sanctions against Russia as an opportunity for it to increase its presence on the Mediterranean market of energy products, said its chief executive on Monday. It is also considering investing in petrochemicals. In an interview given at the ADIPEC conference in Abu Dhabi, Ruya B. Bayegan, CEO, BGN, said that it was difficult to estimate how much trade would change in the Mediterranean as a result of recent sanctions against Russia. She said, "These changes will increase the presence of our company." We are already strong in the Med, with (oil) products. BGN has a new strategy, which involves shifting from trading to owning assets. Bayegan explained that this is to diversify BGN. She said that BGN was "studying" the possibility of acquiring petrochemical assets in Europe, including potentially distressed plants which could be relocated elsewhere. Bayegan noted that the sector was in a "bad phase." Bayegan said that the company was looking for upstream opportunities. Bayegan, who said BGN trades in 120 different countries, said that it finances its investment push with a combination equity, balance-sheet cash and "different partnership" while its trading arm is supported by established trade financing lines. In the same interview with the CEO, Wael Amer, the company said it is actively hiring to support growth. Its focus will be on expanding operations in the U.S.A., Latin America and Asia. Amer stated that recent key hires included co-heads of its LNG desk as well as a global director of metals. Amer stated that BGN has been supplying 100% of Egypt's LPG for the past eight years. Amer said that BGN recently signed a contract to supply 42 cargoes liquefied gas to Egypt. Amer stated that BGN loads one crude cargo per month in South Sudan and like its competitors, it makes prepayments on its cargoes.
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Chile's Codelco reduces copper production guidance for 2025, despite higher production in September
Chile's Codelco - the world's biggest copper producer - cut its forecast on Tuesday for 2025 production, despite a higher output in the first nine months of the year through September. The state-owned mining company lowered its copper output guidance for this year to between 1.31 and 1.34 millions metric tonnes, down from an earlier estimate of between 1.34 to 1.37million metric tons. However, it still hopes to surpass last year's 1.32 million tons. Last week, copper prices reached a record high due to concerns about mine supply and the prospect of a U.S. China trade agreement. Codelco has highlighted the production increase at the Ministro Hales Mine and the importance of the Rajo Inca project structural at the Salvador mine which is increasing production. Ruben Alvarado, CEO of the company, said that the cut in guidance "doesn't jeopardize expectations" to produce 1.7 millions tons per year by 2030. The output of the country increased by 2.1% The miner produced 937,000 tonnes in the first nine month of the year. This is a 2.1% increase over the same period the previous year. The increase in production was achieved despite a July 31 accident at Codelco's flagship El Teniente Mine, which caused a temporary stop to mining and melting. The company stated that "this unfortunate accident has impacted the results of production achieved at the end the second quarter this year." Alvarado said that Codelco anticipates having more conclusive data about the accident before the end of the calendar year. Vice President of Operations Mauricio Baraza stated that Codelco expects to also have a long term development plan for El Teniente by the end of the year, which will help mitigate the lack production using resources from the southern part of the deposit. He said it would take three years for El Teniente to reach the level of production they had prior to the accident, in which six workers were killed. The company reported a profit before tax of $606.9 millions from January to Septembre, a little below the $612.2 that was reported during the same period in 2013. Reporting by Fabian Cambero, Aida Pelaez Fernandez and Rod Nickel; editing by Kylie Madry.
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EU warns that MMG's Anglo American nickel deal could divert nickel away from Europe
EU antitrust regulators warned on Tuesday that the plan of Hong Kong-listed MMG to purchase Anglo American's Brazilian Nickel business could allow MMG to divert Ferronickel away from Europe, and harm European stainless steel production. The European Commission, the EU's competition enforcer opened a detailed investigation into the deal amid global concerns over the supply of key mineral and China’s dominance. Anglo American announced The sale In February, two ferronickel projects and two greenfields in Brazil were completed. In a recent statement, EU Antitrust Chief Teresa Ribera stated that ferronickel is an important input for European producers in order to produce high-quality stainless steel with low emissions at competitive prices. This is crucial for many sectors. She said, "Our investigation is aimed at verifying whether this concentration can jeopardize continued and reliable access to this resource in Europe." The Commission stated that a divert of ferronickel, along with limited alternatives supply sources, could negatively affect the price, quality, and a significant share of European stainless-steel production, affecting its ability to compete internationally. MMG and Anglo American both said that they were committed to this deal. MMG and Anglo American said they were committed to the deal. The Commission will make a decision by 20 March on whether or not to approve the deal. It can also extend the period if new concessions are made. (Reporting and editing by Sharon Singleton; Foo Yunchee)
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Kremlin: Russia is in constant contact with Venezuela about Caribbean tensions
Dmitry Peskov, Kremlin spokesperson, was quoted on Tuesday as saying that Russia is in constant communication with Venezuela about tensions in Caribbean. Peskov told reporters during a press briefing that "we have constant working contact with Venezuela" in response to questions regarding whether Moscow is extending assistance to Caracas. Tass reported that Peskov refused to provide any additional details regarding the nature of these contacts. Peskov said, as quoted by TASS last weekend, that Russia wanted to see the situation between Venezuelans and Americans remain calm, and ensure there were no new conflicts in the area. The Russian Foreign Ministry denounced the "excessive" military force used by the United States on the Caribbean Sea at the weekend and reaffirmed their support for Venezuelan leaders. At least 14 boats have been targeted by a U.S. anti-drug campaign in the Caribbean, eastern Pacific and the Indian Ocean. 61 people were killed. In recent months, the United States has increased its military presence in Caribbean. In May, Russian President Vladimir Putin signed an agreement with Venezuelan President Nicolas Maduro in Moscow. (Reporting and Editing by William Maclean).
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OPEC's oil output rose by 30,000 bpd during October, according to a survey
A survey on Tuesday found that OPEC oil production increased in October following an OPEC+ deal to increase production. However, the rate of growth was much slower than it had been during September and summer. According to the survey, the Organization of Petroleum Exporting Countries (OPEC) pumped 28,43 million barrels of oil per day last month. This is up 30,000 barrels from the total of September. Saudi Arabia and Iraq saw the biggest increases. OPEC+ - a grouping of OPEC members and their allies, including Russia - has slowed down the pace at which its output increased in October, due to growing concerns about a possible glut. OPEC+, which includes OPEC and its allies, including Russia, has slowed the pace of its output increases for October, due to growing concerns over a possible supply glut. According to an agreement between eight OPEC+ member countries covering October output, five of the OPEC-members - Algerian, Iraqi, Kuwaitian, Saudi Arabian and UAE - had to increase output by 86,000 bpd, before the effects of compensation cuts totaling 140,000 bpd. The survey shows an increase of 114,000 bpd by the five countries, but decreases in Nigeria Libya and Venezuela have offset these gains. Many outside sources estimate the output of Iraq and the UAE higher than those countries themselves. Other estimates, like those from the International Energy Agency (IEA), say that they pump significantly more than the quotas. The survey aims at tracking supply on the market. It is based upon flow data provided by financial group LSEG and other companies who track flows such as Kpler. Also, it includes information provided by oil companies, OPEC, and consultants. (Reporting and editing by David Goodman)
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As the market waits for US jobs data, gold slips by more than 1%.
The dollar reached three-month highs as traders awaited U.S. data to determine the Federal Reserve's policy. As of 10:54 am EST (1554 GMT), spot gold was down by 1.1% at $3,959.56. U.S. Gold Futures for December Delivery fell 1.1% to $3968.10. Dollar index trades at three-month highs. This makes gold more expensive to other currency holders. David Meger is director of metals at High Ridge Futures. "With the dollar reaching new highs, it's affecting the gold price. Fed Chair Jerome Powell said that although the U.S. Central Bank cut interest rates in the past week, the rate reduction could be the last for the year. CME Group's FedWatch shows that traders now expect a 71% probability of a Fed rate cut during the December 9-10 meeting. This is down from more than 90% one week ago. Gold that does not yield is a good investment in low interest rate environments and times of economic uncertainty. Investors are paying more attention to non-official economic data such as the ADP National Employment Report, since the U.S. Government shutdown is likely to be the longest in history and will halt the release of official government data. ADP's October report is scheduled to be released Wednesday. Fed officials' comments have revealed differing views on how to close the data gap. Bullion has fallen by 9% since its October 20 record high, despite a 53% gain this year. Gold is losing some of its froth, but still pricing in concerns about Fed independence, the possibility for stagflation and underlying geopolitical risks and international tensions. In a note, Rhona Connell, an analyst with StoneX, stated that some of the froth had been blown away in a much needed correction. Palladium dropped 3.1%, to $1400.35, while platinum fell 1.2%, to $1,546.88. (Reporting from Noel John in Bengaluru and Pablo Sinha; Editing by Alexander Smith, Paul Simao and Paul Simao).
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Nigerian army confirms 19 deaths in Kano clashes, including troops and bandits
Nigeria's military said on Tuesday that 19 armed bandits had been killed in a gunfight in Kano State, marking an outbreak of violence rarely seen in this commercial hub in the northwest. In a press release, Babatunde Zubairu, the Army's spokesman said that in addition to two soldiers who died during the operation, a vigilante from the locality also perished. The army reported that the clash took place in Shanono where troops, backed by security agencies, raided an underground bandit den. The operation is part a larger military campaign to combat the escalating violence in northern Nigeria where armed group have murdered and kidnapped tens of thousands in recent years. Separately, Nigerian-Nigerian forces defeated an attack on a military facility in northeast Nigeria by Boko Haram fighters and Islamic State West Africa Province(ISWAP) fighters early Tuesday morning, killing six insurgents. The army reported that additional fighters were killed by airstrikes in the aftermath. In a press release, the regional counter-insurgency force of the Army said that an assault began at 0330 GMT on Forward Operating Base Kangar in Borno, a state bordering Niger. The attack involved drones with armed weapons and mortar fire. The statement stated that several soldiers and civilian JTF were injured, but they were quickly evacuated to receive treatment. Ahmed Kingimi, Maiduguri (Additional reporting by Ahmed Kingimi; writing by Elisha Gbogbo; editing by Aidan Lewis and William Maclean).
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Brazil's Conab increases sugar production despite smaller cane crops
Conab, Brazil's crop forecaster and food supply agency, raised Tuesday its projections for sugar production by the country in 2025/26. The season began in April. Conab's estimate of Brazil's sugar output was 45.02 millions metric tons. This is a half-million tons more than its previous forecast. This is higher than the 44.12 millions tons of sugar produced last year. According to the government agency, sugarcane production fell by 0.35% in the last stages of harvesting. Conab stated that the sugar production was higher despite the smaller sugarcane harvest because mills allocated more cane for the production of sweetener. They are now using less sugarcane to produce fuel ethanol. The Agency reduced its estimate of cane-based alcohol production by over 200 million liters to 26,55 billion liters. Brazil will, however, produce more corn-based bioethanol in 2025/26, with 9.6 billion liters compared to 7.8 billion in the previous crop.
Bond markets shine as shares recover from China's sell-off
The world stock market was mostly higher on Friday as the Federal Reserve made dovish remarks and an auction of Japanese 30-year bonds went smoothly. This helped to calm recent fears in the government bond markets.
Chinese bourses fell overnight, on reports Beijing was trying to cool down a red hot stocks rally.
FTSEurofirst's 300 index ticked higher by 0.4%, while S&P 500 futures and Nasdaq futures grew by 0.1%. This was due to a easing of concerns about the rising cost of long-term borrowing in countries like France, Britain and America.
The oil prices continued to fall after a report that OPEC+ officials were looking to increase output targets at the weekend. Meanwhile, the dollar was slipping ahead of Friday's important jobs report.
The increase in jobless claims was a welcome appetiser, but traders were happy to keep the powder dry.
In recent days, several key Federal Reserve officials have raised expectations for an imminent U.S. interest rate cut. The money markets now price in a near-100% probability that one will be announced at the Fed meeting in less than two weeks.
Derek Halpenny, head of global markets research at MUFG, said: "The markets are now a bit more convinced that the Fed will cut rates this month. This has led to a modest decline in bond yields."
He said that the Chinese equity market drop had affected the Australian and New Zealand dollars in FX markets a little, but it was mostly a matter of "consolidate" and "wait" for Friday's employment numbers.
The German 30-year bond rate fell to 3.3% as European bond buyers pushed it down. France's bond yield was down slightly more, at 4.40%. It had hit 4.523% Tuesday, its highest level since June 2009. This was due to fears that the government might collapse again.
SALEFORCE SHARES SLUMP
Salesforce's shares fell by nearly 7% in the hours before market opening after Wall Street analysts were disappointed with its third-quarter revenue due to the slow monetization rate of AI-powered product.
The AI euphoria that has driven U.S. stock indexes up to record highs has subsided since Nvidia's and other companies' numbers have failed to impress investors.
China was the focus of overnight action following a report stating that regulators are preparing measures to cool equity markets.
Beijing bluechips dropped as much as 2,6%. The tech-heavy STAR 50, which soared almost 30% last month fell more than 6% on its worst day since the beginning of April.
Wall Street futures pointed to a smooth restart. The next payrolls will not be until Friday but traders can listen to the hearing for Stephen Miran. He is Donald Trump's choice to replace Adriana Kugler, who resigned from the Fed board.
Jim Reid, Global Head of Macro Research at Deutsche Bank, said that it would be interesting to see senators question Miran about his views on Fed Independence, especially since Trump has tried to fire Fed official Lisa Cook, and has criticised Fed Chairman Jerome Powell repeatedly.
Miran stated in his testimony, posted on the Senate Banking Committee website Wednesday, that he intended "to preserve" this independence.
The auction of Japanese 30-year bonds that took place in Tokyo over night was a success, despite the concerns about Fed independence.
The Nikkei ended the day 1.5% higher, after recovering from its biggest one-day drop since April.
India's benchmark Sensex index rose by as much as 1% when markets reopened following the government's decision to lower taxes on several items in an effort to boost consumption and counter U.S. Tariffs.
The Federal Reserve's "Beige Book", released on Wednesday, painted a mixed image of the U.S. economic situation. This appeared to confirm monetary policymakers concerns. Analysts from ING described it as "bleak", and warned that it was "littered" with warnings regarding the inflationary effects of import tariffs.
In early U.S. trade, the yield on 10-year Treasury bills dipped to 4.18%. The 2-year yield was at its lowest since May.
The dollar rose 0.2% to 148.45 yen, staying within the range of trading it has been in since August began.
The dollar was slightly higher at $1.1650 against the euro. Brent crude fell another 1.4%, to below $67 per barrel. Gold also slipped 0.5% back after reaching a record high on Wednesday of 3,578.5 ounces. (Editing by Kevin Liffey).
(source: Reuters)