Latest News
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China's BYD recalls 89,000 plug-in hybrids due to battery safety hazards
BYD is recalling 88,981 hybrid plug-ins due to a possible battery safety issue, China's regulator of the market said in an announcement on Friday. This comes weeks after BYD's biggest recall. The Qin PLUS DM i models that were affected were manufactured between January 2021 to September 2023. "There may be limited power output because of problems with consistency during production", said the notice. The market regulator stated that in extreme cases they would not be able drive in pure-electric mode. It added that the recall was the result of an investigation into a defect it initiated. BYD has recalled over 210,000 vehicles in the past year. This includes nearly 7,000 plug-in hybrid SUVs. BYD announced in mid-October its largest recall to date of over 115,000 Tang and Yuan Pro cars produced between 2015 and 2020 due to design defects, battery safety risks and other issues. BYD sales in October dropped by 12% compared to the same period a year ago, following a 33% decline in profit for the third quarter. BYD recalled 97,000 Dolphin and Yuan Plus electric vehicles in September 2024 due to a defect involving the steering control unit, which could have caused a fire. (Reporting and editing by Beijing Newsroom; Joe Bavier, Alexander Smith).
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Putin hosts Hungary Orban to discuss energy and Ukraine
On Friday, Russian President Vladimir Putin welcomed Hungarian Prime Minster Viktor Orban to Moscow. This was a rare visit of an EU and NATO leader. He said he would be pleased for Budapest host a Russia-U.S. Summit with President Donald Trump. Orban called for detailed discussions on Russian oil and natural gas supplies. The Hungarian president, who met Putin for the fourteenth time, maintained close ties to the Kremlin, despite Russia’s war in Ukraine. This led to 19 rounds of EU sanction and a sharp reduction in the reliance on Russian oil. He has often questioned Western aid to Kyiv. Orban who has also warm relations with Trump was scheduled to host a Putin and Trump summit in October, but the U.S. president pulled out saying that he didn't want it to waste time. In televised remarks Putin thanked Orban for the offer of the venue and told him he still welcomed the meeting to Budapest. The talks took place as Trump's envoy Steve Witkoff prepared to meet Putin in Moscow in the next week to renew efforts to end this war. Orban stated that "we hope very much" that the peace offers on the table would lead to peace and a ceasefire. He had earlier posted on Facebook that he would be visiting Moscow to "ensure Hungary's supply of energy for the winter and in the next year." After Orban made a strong case for relief during an amicable meeting with Trump in Washington, the U.S. granted Hungary an exemption to sanctions so that it could use Russian oil and natural gas. A potentially unwelcome move for Moscow is that Hungary signed a nuclear cooperation pact with the U.S. for the purchase of fuel and technology to store spent fuel in Paks 1, a Russian-built facility south of Budapest. Rosatom, the Russian nuclear company, is building a new extension for its plant. The project was originally planned in 2014 but has been delayed by years. The Foreign Ministry of Hungary said that Hungary imported more than 7 billion cubic meters of natural gas and 8.5 million tons of crude from Russia in 2018. Putin said Hungary's position regarding the Ukraine war was "balanced". He also stated that bilateral trade fell by 23% due to "external sanctions" last year, but would recover by 7% by 2025.
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LME will lower client fees by 2026 to increase liquidity
London Metal Exchange announced on Friday that it will reduce transaction fees to its customers in order to increase liquidity on the LMEselect platform and support physical market trading. The LME announced that the electronic trading system's client trading and clearing fees will be reduced by 7.4% to 8.5 percent. The bourse announced that member electronic transaction fees would be subject to a "inflationary" increase of between 3.4% and 3.7%. However, it added that "all-in transaction costs" for an outright client trade on LMEselect will fall by 4.5%. The 148-year old exchange announced that the new fees would take effect on January 1, with the exception of client transaction fees which will be effective from March 1, 2026, to allow members time to implement any changes to procedures. In a statement, LME CEO Matt Chamberlain stated that "While we think that higher fees would be appropriate for inter-office trading that is more bespoke, we are committed to maintaining lower trade fees on physical markets, such as Ring Trades and short-dated Carry Trades, across all venues." (Reporting and editing by Joe Bavier; Tom Daly)
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Tin at 3-1/2-year High on Congo Mine Supply Fears
The price of tin rose to its highest level in over three-and-a-half years on Friday, as fears of shortages were stoked by talk of mine supply disruptions occurring in the Democratic Republic of Congo. However, traders denied rumors of a force majeure. As of 1046 GMT, the London Metal Exchange reported that three-month tin was up by 1.9% to $38,760 per metric tonne. Metal used for circuit-board soldering jumped as high as 2.3% in the morning session, to $38,930. This is the highest since May 9, 2020. Broker Marex stated in a report that the extension of the ban on manual mining to two DRC provinces, and the escalating conflict east of the DRC have "raised concern about disruptions in transport from the Bisie Mine which accounts for around 8% of global production of tin ore." However, traders denied that the Bisie mine had declared force majeure. Marex said that although Myanmar's Wa State issued mining permits, the actual production resume is significantly delayed due to rainy season issues, equipment problems, and labour shortages. Other metals also broke through $11,000 per ton, with copper reaching $11,010, after China's Smelter Group announced that its members will reduce mine-fed production by 10%. As of 1046 GMT the metal used for power and construction rose 0.5% to $10,998.50, on track for a weekly increase of 2%, and an increase of 1% in this month. John Meyer, an analyst at SP Angel, said: "I can see copper reaching $11,000 before Christmas again and then pushing up to $11,500 by the beginning of next year." He cited a number of mine supply restrictions. Shanghai Futures Exchange monitors copper inventories in warehouses The bourse reported on Friday that the number of tons traded in the last week fell by 11.5% to 97 930. Zinc increased by 0.6%, to $3,031, and aluminium rose by 0.6%, to $2,844.50. Nickel rose 0.4% to 14,885 while lead grew 0.2% to 1,991. (Reporting and editing by Sonia Cheema, Maju Samuel and Sonia Cheema; Additional reporting by Polina Duan and Dylan Duan)
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Oil prices will be under pressure in 2026 due to the soaring supply
A poll on Friday showed that oil prices will remain low in 2026 as a result of soaring supplies and modest growth in demand. Geopolitical risks may also limit further losses. In a survey of 35 economists, analysts and other experts, it was predicted that Brent crude will average $62.23 per barrel by 2026. This is down from the October forecast of $63.15. According to LSEG, the benchmark has averaged 68.80 dollars per barrel in 2025. The average price of U.S. crude oil is expected to be $59.00 per barrel. This is lower than the $60.23 expectation from last month. Zain Vawda is an analyst with MarketPulse, by OANDA. He said that the crude oil market will be marked by an unprecedented and large global oversupply in 2026. Nevertheless, "ongoing risks" will keep a premium on the risk, which prevents the price from falling as low as a high supply would suggest. The majority of analysts expect the oil markets to be in surplus by 2026. Estimates range from 0.5 to 4.2 million barrels a day, as opposed 0.19-3.0 in the previous poll. According to a calculation based upon the report, the International Energy Agency's forecasts imply a surplus of 4,09 mbpd by 2026. Meanwhile, OPEC's monthly report suggested a surplus of 20,000 bpd if it keeps pumping oil at the rate seen in October. OPEC+ plans to halt production increases in the first quarter 2026. The poll indicated that Brent was expected to average $60.23 during this period. Many poll participants believe that OPEC+ won't increase production aggressively in 2026 due to persistent concerns about oversupply. We remain sceptical that the group will reverse the unwinding again. Kim Fustier is the head of European Oil & Gas Research at HSBC. She said that it will only consider this option if Brent stays below $55/barrel over a long period. The poll revealed that global oil demand is projected to increase by 0.5-1.2 million barrels per day (mbpd) in 2026. Matthew Sherwood is the lead commodities analyst for EIU. He said that analysts expect U.S. Shale production to decline by 2026. This, combined with geopolitical risk, "should set a floor price of $60/barrel." Analysts said that the U.S. sanctions against Russia's largest oil companies Lukoil, and Rosneft could cause a brief disruption in supply, but they are unlikely to impact the market for a long time. They expect Russian barrels to enter markets through shadow fleets and middlemen. Analysts noted that peace talks could bring back more barrels to the market and increase supply pressure.
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Codelco sells copper to US clients at a record-high premium of $500 per ton above LME prices
Two sources familiar with this matter claim that Chile's state owned copper producer offered to sell copper to U.S. clients with contracts based upon London Metal Exchange copper price at a record premium of over $500 per metric ton. The premium is added to the benchmark LME price and reflects fundamentals of demand and supply. The premium also covers transport costs and taxes. Codelco didn't immediately respond to our request for a comment. The LME copper price reached a record high of $11,200 per ton on the 29th October due to expectations that shortages would occur, partly as a result of disruptions such as accidents at mines located in Indonesia and Chile. On Comex, the copper price hit a record of $5.8950 per lb, or $12,996 per ton, on the 24th of July, ahead of an announcement about whether the United States will impose tariffs against imports of this metal, which is used in construction and power industries. The 50% tariff on imported copper that was introduced on August 1 has been lifted for refined copper. The copper prices on Comex are now lower as the levies on U.S. imports of copper continue to be reviewed. Howard Lutnick, the Commerce Secretary, is expected to give Trump an update on the domestic copper market by June 2026. Amy Lv and Lewis Jackson reported; Tomaszjanowski edited.
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UN: Mediterranean and Black Sea fish stocks are recovering, but threats still persist
In a report released on Friday, the U.N. Food agency stated that the fishing pressure in the Mediterranean Sea and Black Sea had dropped dramatically over the last decade. However, just over half the assessed fish populations are still overfished, and climate change threats continue to grow. The Food and Agriculture Organization in Rome said that sea fishing and aquaculture in salty or partially-salted coastal waters produce about 2,06 million tonnes of food per year, worth $21.5 billion, and support 1,17 million jobs. The FAO's biennial report stated that the average overall fishing pressure had fallen by 50 percent since 2013. Meanwhile, the percentage of stocks being fished at sustainable levels has increased thanks to better management and reduced fishing pressure. 'STOCKS NOT YET WHERE WE WOULD LIKE THEM TO BE' Despite this, 52% are classified as overexploited. In parts of the Adriatic and central-eastern Mediterranean, incidental catches of sharks and sea tortoises pose a serious problem. "Stocks have not reached the level we'd like, but are starting to recover, thanks to strong stakeholder engagement and science-driven management actions. Aquaculture is also proving that it can meet future demands for aquatic food," said Manuel Barange. In 2023, the Mediterranean and Black Sea fisheries caught a total of 1,12 million tonnes wild-caught marine animals and fish, an increase of 13% over 2022, but a relatively stable amount for the last decade. Turkey was the top fishing nation with 31% of landings, and 17% of total fleet capacity. Italy and Greece were next. In 2023, aquaculture in the region will produce 2.97 million tonnes worth $9.3billion, of which 940,000 tonnes are produced in semi-salted or salty waters. The report stated that aquaculture is under increasing pressure due to heatwaves and disease outbreaks. Non-indigenous species, complex licensing and legal structures, and non-indigenous species can all deter investment. The report stated that to meet the projected demand of 2050, and ensure that countries in the region achieve the global average per capita consumption for aquatic foods, which is 20.7 kg (45.56 lb), in 2022, production will need an increase between 14%-29%. (Writing and editing by Conor Humphries; Crispian Balmer)
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The CME: Key Facts
A CME Group outage on Friday stopped trading in its popular currency platform, as well as futures covering foreign exchange, commodities and Treasuries. CME stated in a press release that the problem at CyrusOne's data centres was caused by a cooling issue. It added it was working on a "near-term" resolution, but did not provide any further details. The CME is a great place to trade. Futures are an important part of the financial markets. They're used by traders, speculators, and businesses who want to hedge their positions or take positions on a variety of assets. CME reported earlier this month that the average daily derivatives volume in October was 26.3 million contracts. CME offers options and futures on commodities, interest rates and equity indexes as well as foreign exchange and cryptocurrency. The Chicago Mercantile Exchange was created through the merger of four major U.S. markets. It now has four main entities: Chicago Board of Trade, New York Mercantile Exchange, and COMEX. CME Globex offers global access to trading via electronic means. IMPACT BY ASSET CLASS: ENERGY & FUELS The halt affects energy markets by freezing options and futures on key benchmarks, such as NYMEX West Texas Intermediate crude (WTI), Henry Hub natural gas and NY Harbor ULSD heater oil. CME says that WTI Light Sweet Crude, the world's most-liquid crude oil contract, is traded daily by more than one million WTI Futures and Options. CME reports that around 400,000 Henry Hub Natural Gas futures are traded each day. NY Harbor ULSD Futures represents more than 180,000,000 barrels of trading per day. These contracts are essential for producers, refiners, and traders in order to manage the supply chain and hedge against price risk. SOFT AND HARD COMPOUNDS - AGRICULTURE The trading halt disrupted the price discovery process and hedges in agricultural markets. This is a core CME offering. The contracts listed include: Cotton, lumber, and softs. Grains and oilseeds are also included. When trading is paused, investors, producers and processors lose access to benchmark hedge tools. Metals CME's Metals Complex includes precious metals such as gold, silver, platinum and palladium, and base/ferrous materials like copper. COMEX gold futures are an important benchmark for determining global gold prices and hedging portfolios. EQUITY INDEX CME offers equity index futures and option contracts linked to major benchmarks, including the S&P 500 and Nasdaq 100, Dow Jones and Russell 2000. It also lists international indices, such as Nikkei 225 and Micro E Mini, and E-mini and Micro E mini variants. Asset managers, hedge fund and proprietary traders use these products for index-level positioning and tactical hedging. Interest Rates, Fixed Income and Foreign Exchange CME's interest rate suite includes benchmark futures and option on SOFR, Fed Funds (U.S. Treasury Notes and Bonds), U.S. Treasury bonds and notes, and other short-term rate. The FX complex of the company offers listed options and futures on major and emerging market currency pairs. Cash FX is also traded via EBS, which is a popular platform for cash FX and other spot products. According to LSEG, the prices of futures on U.S. 10-year Treasuries stopped updating, and the prices on EBS were also frozen, temporarily complicating currency and rate hedging by banks, corporations and asset managers. CRYPTOCURRRENCIES CME offers institutional users regulated cryptocurrency options and futures, including Bitcoin and Ether. It also provides crypto indexes and reference rates. This is one of the most popular exchange-traded and centrally cleared methods for hedging major digital assets. WEATHER CME operates a weather derivatives market with futures and option linked to Heating Degree Day indices (HDD) or Cooling Degree Day indices (CDD), and other temperature-based standards for U.S. These contracts are used by utilities, energy companies and other businesses that are sensitive to weather changes in order to protect their revenues and costs. Reporting by Sherin Varghese in Bengaluru and Noel John, Editing by Ros Russel
Stocks finish November with a strong performance, boosted by Fed's cut in bets. Trading outage affects futures.
The global stock market entered a volatile final session on Friday as an outage in the exchange operator CME Group disrupted trading of a wide range of futures contracts on currencies, commodities and Treasuries, further reducing liquidity.
CME's datacentres were down when U.S. investors returned from Thanksgiving for a short session on Friday. CME's EBS platform had resumed some currency trading by 1305 GMT.
The STOXX 600 index in Europe was essentially unchanged for the day. It had gained 0.5% during November, its lowest monthly performance since June.
The S&P 500 will experience its first monthly drop since April. It fell 0.4% in November. However, it recovered from a two-month-low a week earlier, which implied a 5% month-to date decline.
Choppy November
The global equity markets were unusually volatile in November of this year. Concerns about the sky-high valuations of tech stocks shook the markets, while a U.S. shutdown ended after 43 days. Bitcoin, which is a good indicator of risk appetite among investors, fell 16% in November.
Federal Reserve officials are cautious because the shutdown of the federal government has not produced any economic data. However, heavyweights such as New York Fed President John Williams and Fed Governor Christopher Waller have expressed support for a cut in rates next month. This has been a key factor to the recovery of stocks.
Samy Chaar, an economist at Lombard Odier, said that volatility is usually expected in September and October. We've seen it in November but have recovered the majority of it.
"We had estimated a December cut of 30%, but now we are at over 80%. "I think that's a very good reason for the rally at month's end," he said.
CME FedWatch shows that Fed funds futures indicate an 85% probability of a rate reduction next month. This is a dramatic change from the 30% chance a week ago.
BOJ HIKE IS IN VIEW
The dollar gained a little ground against a basket major currencies but was heading for its biggest weekly drop since July. It was almost unchanged over the course of the month.
The Japanese yen was slightly stronger and the dollar fell 0.24% to 156.11yen. Last week, the yen reached a 10-month-low of 157.9 yen. Investors are now watching for any signs of intervention by Japanese authorities following weeks of verbal attempts at stopping its relentless decline.
The data showed that Tokyo's core consumer prices rose by 2.8% from November of last year, which was above the forecasted 2.7% increase. This is just one of a number of data points that has kept the bets on a Bank of Japan rate hike alive.
In a recent note, MUFG strategists stated that "today is also the end of the month and FX performance will often be determined by these less predictable flows."
Markets bet on the end of rate-cutting cycles for both the Aussie and kiwi. The minutes of the European Central Bank meeting show that policymakers were also not in a hurry to reduce rates.
The euro slipped 0.2%, to $1.157. This represents a 0.3% gain for the month.
OIL, GOLD Up
The U.S. continued to push for the peace plan in the Ukraine conflict, which led to a drop in oil prices on Friday. Brent crude futures reversed gains and traded down 0.25% to $63.18 per barrel. This is down nearly 2.5% from November.
The spot gold price was up 0.5%, at $4,177 per ounce. This brings the monthly gain of around 4.5%.
(source: Reuters)