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Guinea plans to launch a Simandou-backed Wealth Fund in the second quarter of 2026
Guinea's planning minister announced that the country plans to launch a sovereign wealth fund in the second quarter 2026, with a $1 billion initial investment. The West African nation is leveraging influx of revenue from its massive Simandou Iron Ore Mine. The fund will invest long-term income from resource projects, such as the Simandou Project launched this week, in education, infrastructure, agricultural and industrial sectors, protecting the economy against commodity price fluctuations. Ismael Nabo told journalists in Conakry's capital that he would put a portion of the revenue he received into the sovereign wealth fund. This will help him raise more money to invest and increase his investment. Use mining windfall to smooth out the volatility Guinea is the largest bauxite supplier in the world and has been growing its gold and lithium exports. According to the International Monetary Fund, Simandou's annual production is projected to reach 120,000,000 metric tons high-grade ore between 2030 and 2039. This would add government revenues equal to 3,4% of GDP. This compares to total mining revenue equivalent to 2.2% GDP in 2022. Nabe says that despite the growing dependency on natural resource incomes, investing the windfall in a wealth fund can help Guinea reduce fiscal volatility associated with erratic commodity price fluctuations. He said that the fund would be modeled after global models such as Singapore's Temasek or Malaysia's Khazanah. Good governance, he added, will also be crucial. Guinea is currently governed by a military government and has consistently been ranked in the bottom third on Transparency International’s Corruption Perception Index. The legal framework is crucial. "We've received advice from Saudi Arabia, Singapore and other countries to ensure robust governance," Nabe stated. He added that Guinea is currently hiring a CEO for its fund. PLANS TO ISSUE SUKUKS, DIVERSIFY ECONOMY Funds backed by natural resources in African nations such as Botswana, Angola, and others have helped stabilize budgets and finance the infrastructure of these countries. Nabe stated that Guinea's fund would be supported by reforms to plug fiscal leakages and boost domestic revenue streams. The mine is part of "Simandou 2040", a 15-year plan to use the mine as a catalyst for progress in infrastructure and finance, while also enhancing human capital. Nabe stated that the government is also looking at Islamic finance instruments such as sukuks, as well as partnerships between sovereign funds and other financial institutions to raise market funding. S&P Global Ratings gave Guinea its first sovereign rating in September - B+, with a stable outlook. Nabe stated that Guinea's goal is to increase the share of tourism and fisheries in its GDP from less than 1 percent to 4% within six years. It also aims to boost telecoms by 8%. Nabe stated that if we managed to implement reforms properly, our GDP could reach a level similar to South Africa or Morocco. Maxwell Akalaare Adombila reported; Veronica Brown, Joe Bavier and Joe Bavier edited.
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Tata Steel's quarterly profit in India soars due to strong demand from key markets
Tata Steel reported on Wednesday a nearly 4-fold increase in its quarterly profit, as strong demand in key markets and lower taxes expenses helped to limit the impact of falling prices. The company's net profit for the third quarter ended 30 September was 31.02 billion rupies ($352.9 millions), up from 8.33 billion rupies a year earlier. JSW Steel, a leading steelmaker, posted an increase in profits for the third quarter of September last month due to increased sales volume. The company anticipates that prices for the alloy will increase in the quarter ending December. India, which is the second largest producer of steel in the world, has seen its prices fall even after the government implemented a three-year import tariff on certain steel products. The demand for domestic goods remained stable as the manufacturing sector increased. Tata Steel's total tax expenses dropped to 10,39 billion rupees, from 14,05 billion rupees one year earlier. The core profit for India, which is earnings before taxes, interest, depreciation and amortization, grew by 25% to 86.54 trillion rupees. The total revenue generated by the company's operations increased about 9%, to 586.89 trillion rupees during the quarter reported. The core profit for its Netherlands operations, its second-largest, was 92 millions euros ($107) compared to 22 million euros one year earlier. The company's shares gained about 6% between July and September, a lower increase than the 12% gain in JSW Steel or the 13% rise in Jindal Steel. Tata Steel's shares closed 1.3% lower before its quarterly results. ($1 = 87.8950 Indian Rupees) ($1= 0.8575 Euros) (Reporting and editing by Pooja Deai in Bengaluru)
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OPEC moves away from projected deficits and sees a balanced oil market by 2026
A report released by OPEC on Wednesday showed that the world oil supply will match demand in 2020, reflecting the production increase of OPEC+. This is a shift from earlier predictions of a 2026 supply deficit. OPEC+ - which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other allies - has increased its production targets by approximately 2.9 million barrels a day - or about 2.7% of the global supply – since April. The company plans to stop production increases in the first quarter 2026, amid predictions that there will be an oversupply. In a report released on Wednesday, OPEC stated that the growth trend of the global economy remained stable. Despite the agreement to increase output for the month by OPEC+, the group has cut its output in October by 73,000 bpd. This was due to a decrease in Kazakhstan. According to a report, if OPEC+ continues pumping crude oil at the rate of October 2026, the world will have a marginal surplus. The report from last month projected a deficit 50,000 bpd and the report for September indicated a shortfall 700,000bpd. (Reporting and editing by Jane Merriman, Alex Lawler)
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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)
US shutdown relief drives stocks higher as traders keep a close eye on the yen
The world stock markets rallied Wednesday, with European markets reaching record highs. This was as the U.S. Congress appeared to be ending a government shutdown. It cleared the data fog which had fuelled economic uncertainty in the U.S.
As the yen fell to its lowest level in nine months against the dollar, officials made more comments.
The STOXX 600 index in Europe and the FTSE 100 index in London both hit new highs, mainly due to banks. Meanwhile, U.S. futures indicated a positive opening on Wall Street, and Japan's Nikkei closed 0.4% up.
U.S. JOBS DATA IS EXPECTED
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.
Michael Metcalfe, State Street's director of macro strategy said that there was always the risk that growth could be affected by the shutdown, making 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 of 25 basis points 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.
On Wednesday in Japan, the Topix broader index rose by over 1% and reached a new 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.
The STOXX 600 index in Europe rose 0.6% as a result of the positive quarterly earnings reported by Dutch bank ABN AMRO. However, the FTSE index fell a little after reaching record highs.
Watches YEN
The yen has fallen to a nine-month low of 154.91 dollars per yen. Tokyo's Finance Minister Satsukikatayama said she wouldn't deny the fact that the negative effects of the weaker yen are more prominent than the positive.
The Japanese yen has dropped 0.9% in the past week, a result of the risk-on sentiment that investors have based their expectations on the end of the U.S. government shutdown and the increased fiscal generosity expected under the new prime minister Sanae Takaichi. Mohamad al-Saraf is an FX Strategist at Danske Bank. He said that the effect of verbal interventions was not as important as it used to be. For the Japanese authorities to strengthen the yen effectively, they will need to make a real intervention. This could happen in the next few months.
The dollar index (which measures the greenback's value against other major currencies) was 0.1% higher last week at 99.59 while the euro was barely changed around $1.1572.
The sterling was slightly weaker around $1.3123, while UK government bonds showed a slight decline as politics returned to the forefront.
The 30-year gilt rate in Britain was up 5 basis points for the day, at 5.22%. Meanwhile, U.S. Treasury rates were lower.
Wes Streeting, the British health minister, denied Wednesday that he plotted to topple Keir starmer after unnamed aides of the prime minster told newspapers they were concerned about a coup attempt after the November 26 Budget.
Brent crude futures fell 55 cents or 0.8% to $64.61 per barrel, after rising 1.7% on Monday. U.S. West Texas Intermediate Crude fell 0.9% to $60.48 per barrel.
Gold prices were little changed today, at $4,126.
(source: Reuters)