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Waymo will update its software after a power outage in San Francisco snarls the self-driving cars
Alphabet's Waymo unit said on Tuesday that it would update the software used to operate self-driving vehicles and improve emergency response protocols. This comes after Saturday, when its robotaxis in San Francisco stalled due to an extensive power outage which snarled city traffic. Waymo paused its service on Saturday night following a fire that broke out at a PG&E power substation, knocking out electricity to about one-third the city. This affected approximately 130,000 residents as well as forcing some businesses to temporarily close. There are a number of videos on social media that show Waymo robotaxis at intersections with their hazard light on, as the traffic lights have stopped working because of an outage. Waymo's self-driving cars are capable of handling dark traffic signals in four-way stop areas, but may request confirmation checks from time to time. Waymo stated that "while we were able to successfully navigate more than 7,000 darkness signals on Saturday, this?outage caused a concentration of?these requests." This created a backlog which, in some instances, contributed to response delays, contributing to congestion. Waymo says that the protocols were appropriate during the early stages of deployment, but they are now being refined to fit the current size of the company. Waymo has implemented fleet-wide updates to provide vehicles with "specific context for power outages, allowing them to navigate more decisively." Waymo said that it would also improve its emergency response protocol by incorporating the lessons learned from this incident. Waymo has announced that it will resume its ride-hailing services in the San Francisco Bay Area. The company, which operates a fleet of over 2,500 vehicles, is located?in Los Angeles, Metro Phoenix Arizona, Austin Texas, and Atlanta Georgia. California Public Utilities Commission announced on Monday that it is reviewing the issue of Waymo vehicles stuck in traffic. The CPUC and California's Department for Motor Vehicles regulate and issue permits for robotaxi testing and commercial deployment. Waymo issued an update to its software earlier this month after Texas officials said that the vehicles had illegally passed at least 19 school buses since the beginning of the school year. The National Highway Traffic Safety Administration opened an investigation into the matter in October. (Reporting and editing by Christian Schmollinger in Washington, Kanishka Singh and David Shepardson from Washington)
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Metal markets are a frenzy as gold tops $4500 and silver and platinum both hit new records
On Wednesday, gold surpassed the $4,500 mark for the first time, and silver and platinum reached record highs. Investors piled into precious materials on the back of safe-haven demand, and the expectation that U.S. rates would fall further in the coming year. Gold spot rose by 0.1%, to $4,492.51 an ounce, at 0359 GMT. It had earlier reached a session high of $4,525.19. U.S. Gold Futures for February Delivery climbed 0.3%, reaching a new record high of $4520.60. Silver rose 1.2% to $72.27 an ounce after reaching a record high of $72.70, and platinum increased 3.3% to 2,351.05 from a previous historic?high? of $2,377.50. Palladium rose almost 2%, to $1.897.11, the highest level it has reached in three years. Ilya Spirak, global macro head at Tastylive, said that precious metals are becoming more of a speculative asset, based on the idea that with de-globalization you need an investment that acts as a neutral intermediary, without any sovereign risk, especially as tensions persist between?the U.S. Spivak said that thin year-end liquidity exaggerated the recent price movements. However, the theme is likely to persist, with gold aiming for $5,000 in the next six to 12 months, and silver pushing towards $80, as the markets respond to psychologically important levels. Gold prices have risen by more than 70% in the past year. This is their biggest annual increase since 1979. The gains are due to safe-haven demands, central bank buying, dedollarisation trends, and ETFs. Silver's price has increased by more than 150% in the same time period. It is outpacing gold due to strong investment demand and its inclusion on "the U.S. Critical Minerals List" as well as momentum buying. Tim Waterer is the chief market analyst at KCM Trade. He said that gold and silver are "hitting the accelerator pedal" this week, with new?records. This reflects their appeal as store of value amid anticipations of lower U.S. interest rates and lingering debt. Palladium and platinum, which are primarily used to reduce emissions in automobile catalytic convertors, have soared this year due to tight mine supplies, tariff uncertainty and a shift away from gold investment. Platinum is up about 160%, while palladium has gained more than 100% so far this year. Spivak explained that platinum and palladium are catching up to gold. Once liquidity returns, they will closely track each other. (Reporting and editing by Subhranshu Sahu in Bengaluru, Ronojoy Mazumdar, and Sherin Elizabeth Varighese)
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Oil stable after five-day rally due to US data and geopolitical tension
The oil prices were stable on Wednesday after they had risen in the five previous sessions. This was due to the robust economic growth of the United States and the threat of disruptions in supply from Venezuela and Russia. Brent crude futures fell 1 cent, to $62.37 per barrel at 0326 GMT. U.S. West Texas intermediate crude rose 1 cent, to $58.39. The two contracts have increased by about 6% each since the 16th of December, when they plummeted to levels not far from five-year lows. "What 'we've seen in the past week was a combination position squaring on thin markets after last 'week's breakdown did not gain traction. This is coupled with heightened tensions geopolitical, such as the US blockade of Venezuela, and supported by the robust GDP data last 'night," IG analyst Tony Sycamore stated. U.S. data revealed that the world's biggest economy grew in the third quarter at its fastest rate in two years, driven by robust consumer spending as well as a sharp rebound in exports. In that context, it was easy to ignore the API inventory build this morning. It will likely encourage sellers to get in if the rally moves up towards $60.00 in future sessions," Sycamore said. Market sources cited American Petroleum Institute figures on Tuesday to say that U.S. crude stocks rose by 2,39 million barrels in the past week. Gasoline inventories increased by 1,09 million barrels while distillate inventories increased by 685,000. Due to the Christmas holidays, U.S. Energy Information Administration will release official inventory data Monday. Haitong Futures reported that the disruptions to Venezuelan oil exports were the main factor driving up the price of crude. Meanwhile, Russia and Ukraine continuing their attacks on each other's infrastructure has also boosted the market. After the U.S. The U.S. seized the supertanker Skipper in early February and two more vessels were targeted at the weekend. Last week, U.S. president Donald Trump announced "a blockade" on all vessels that enter or leave Venezuela under sanctions in an effort to increase pressure on Venezuelan president Nicolas Maduro. Oil prices will still suffer a loss for the next quarter, as forecasts of a surplus weigh down on them.
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Copper nears record levels as US GDP grows, boosting demand.
Prices of copper remained close to their previous highs as the U.S. economic growth?boosted prospects for demand, while ongoing supply constraints?also?boosted prices. As of 0302 GMT the most active contract for copper on Shanghai Futures Exchange was up 1.5% to 95,100 Yuan ($13.532.0) per metric tonne, after reaching a session high of 95.550 yuan. The benchmark copper three-month contract on the London Futures Exchange increased 0.1% to $12,076.5 per ton. The metal reached a record-high of $12,159.50 on Tuesday. It is expected to rise 38% annually due to the U.S. Dollar's weakness, the growing demand for AI, the renewable energy shift, and mine supply disruptions. The U.S. economic growth accelerated in the third quarter to its highest rate in two years, thanks to robust consumer spending as well as a sharp recovery in exports. According to Chinese market information providers last month, China's leading copper smelters are planning to reduce production by more than 10% in 2026, to combat overcapacity, which has led to an increase in copper concentrate processing costs. Investors bet that the Fed could cut rates even further next year, despite the fact that some of its peers were expected to increase. Nickel, another SHFE base metal, extended its gains for the sixth consecutive session. It rose 4% to reach 126,680 Yuan per ton, and reached a nearly nine-month high. The London benchmark nickel rose 1% to $15,970 per ton. This is a new seven-month record. Aluminium, zinc, and lead all increased in Shanghai. Tin, however, fell 1.2%. Aluminium, zinc, and lead all saw increases of 0.8%. Tin, however, fell 0.2%. DATA/EVENTS (GMT) Japan Leading Indicator Revised October 1330 US Initial Clm of Jobless 20 Dec.
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Debt sales are delayed to the next quarter due to higher corporate bond yields
Merchant bankers and investors said that the high yields on corporate bonds and the cancellation of four planned issues in three weeks has led some issuers?to delay the big-ticket fundraising until the next quarter. Companies, including Micro Units Development and Refinance Agency and Indian Bank as well as ONGC Petro Additions, have delayed debt sales of 150 billion rupees (1.68 billion dollars) that were originally scheduled for the December-January quarter. Non-banking finance companies have also chosen the wait until the next quarter before tapping the market. The yields on AAA-rated bonds for corporates have risen by 20-30 basis point this month. Investors are demanding higher yields from AAA-rated companies due to tight systemic liquidity and elevated government bond yields. Power Finance Corp has cancelled two planned bond sales in the past three weeks. Indian Railway Finance Corp, and SIDBI also canceled their bonds because investors wanted higher returns. The three companies canceled bond sales totaling 225 billion rupees, with maturities ranging from short to long-term. Vinay Pai is the head of Equirus Capital's fixed income. He said: "Global uncertainty, tight liquidity in India, rupee volatility, and outflows of foreign capital have made investors more cautious. This has led to higher yields than market expectations following RBI policy." SILVER LINING LIQUID The recent central bank liquidity push may have a positive impact on corporate bond yields - if not right away, then at least in January and March. Equirus Capital's Pai said that the RBI liquidity injection should help stabilize yields, restore investor confidence, and support corporate issuers. Reporting by Dharamraj Dhutia, Editing by Ronojoy Mazumdar.
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Data shows a decline in global crude steel production, resulting in a fall in iron ore.
The price of iron ore futures fell on Wednesday due to a drop in crude steel production around the world. As of 0241 GMT, the most-traded May iron ore contract at China's Dalian Commodity Exchange was?0.32% less expensive. It traded for 775 yuan (US$110.29) per metric ton. The benchmark January Iron Ore at the Singapore Exchange fell 0.55% to $103.8 per ton. The World Steel Association reported that global crude steel production fell by 4.6% in November compared to the same month last year, to 140.1 millions tons. Meanwhile, China, the world's largest producer and consumer, saw its output drop 10.9%, to 69.9million tons. The construction and manufacturing sectors are expected to be weak, causing a 1.7% drop in crude steel production by Japan. The country's output would have decreased by?3.2% in the fiscal year ending March 31, the lowest since fiscal 1968. Mysteel, a consultancy, reported that Chinese blast furnace steelmakers reduced their purchases of feed material last week. They only purchased the amount needed to meet immediate production requirements to avoid losses. China pledged to increase urban renewal in 2026 and to stabilize its property market at the start of its new five-year plan (from 2026-2030). This is to provide more affordable housing. China's real estate sector has been under pressure since the middle of 2021. Weak home sales and falling prices have weighed on consumer confidence, despite repeated attempts by the government to shore up the sector. Coking coal and?coke were both up and down on the DCE. The benchmarks for steel on the Shanghai Futures Exchange remained mostly positive. Hot-rolled coils gained 0.15%. Wire rods increased 0.03%. Stainless steel strengthened 1.43%. Rebars declined 0.06%.
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Supply risks and strong US economic growth are driving oil prices higher
The oil prices rose modestly on Wednesday. They extended gains from the previous session. This was due to the robust U.S. economy and the threat of "supply disruptions" from Venezuela and Russia. Brent crude futures rose 4 cents or 0.06% to $62.42 per barrel at 0117 GMT. U.S. West Texas Intermediate crude gained 3 cents or 0.05% to $58.41. Brent oil prices rose by over 2% Monday. WTI also climbed the highest since November 14. Prices rose by more than 0.5% again on Tuesday. In its first estimate of the third-quarter GDP, Commerce Department's Bureau of Economic Analysis stated that consumer spending was driving faster growth than expected. It said that the gross domestic product grew at the fastest rate since the third quarter 2023 (a 4.3% annualized increase). The robust U.S. GDP print last night was a major factor in the overnight gains. "Q3 GDP was printed against a backdrop escalating global tensions," IG's Tony Sycamore wrote in a note. Haitong Futures stated in a recent report that disruptions to Venezuelan exports have been the main factor for market sentiment. Russia and Ukraine continuing attacks on each others' energy infrastructure has also supported prices. Analysts say that the market has overlooked the oil inventory data for the largest consumer of oil in the world due to other factors. Market sources cited American Petroleum Institute data on Tuesday to report that U.S. crude oil inventories increased by 2.39 millions barrels in the past week. Gasoline stocks also rose by 1.09 million barrels. Distillate inventories also rose by 685,000, according to market sources. Due to the holiday, U.S. Energy Information Administration will release their data on Monday. Haitong Futures stated in its report that the market's reaction to this build in inventory was limited due to the temporary spike in refined oil demand in December. The U.S. president Donald Trump announced earlier this month that all oil tankers subject to sanctions would be blocked from entering or leaving Venezuela. This has caused vessel owners to be on high alert. TankerTrackers.com, a monitoring service, reported on Tuesday that the Panama-flagged, very large crude carrier Kelly has returned to Venezuelan waters after U.S. interceptions. After the U.S. targeted two more vessels over the weekend, and seized the supertanker Skipper this month, there are now 12 loaded vessels in Venezuela awaiting new instructions from their owners. (Reporting from Sam Li in Beijing, Siyi Liu and Muralikumar Anantharaman in Singapore)
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US warns UN that it will rob Venezuela's Maduro drug cartel of its resources
On Tuesday, the United States informed the United Nations that it would impose and enforce sanctions to "the maximum extent" in order to 'deprive' Venezuelan President Nicolas Maduro resources. Meanwhile, Russia warned that other Latin American nations could follow. The administration of U.S. president Donald Trump has been conducting a deadly campaign against suspected drug-trafficking boats near the Venezuelan and Pacific coasts of Latin America for several months. He has also threatened to strike Venezuelan soil. U.S. Ambassador Mike Waltz told the U.N. Security Council that "the single most serious threat facing this hemisphere and our own backyard, as well as the United States of America, is transnational terrorists and criminal groups." Mike Waltz, the U.N. Ambassador, told the U.N. Security Council. Trump has announced a ban on all vessels that are subject to U.S. sanction. The U.S. military presence in the area has increased. The U.S. Coast Guard has so far intercepted in the Caribbean Sea two tankers, both loaded with Venezuelan crude. The Coast Guard also pursues a third vessel approaching the shore of an OPEC nation. The reality is that the sanctioned oil tanks are the main economic lifeline of?Maduro's illegitimate government. Waltz stated that sanctioned oil tankers are also funding the Cartel de Los Soles, a narco terrorist group. Washington designated Cartel de los Soles or Cartel of the Suns as a terrorist group late last month due to the group's alleged involvement in the importation of illegal drugs into the U.S. It accuses Maduro of leading Cartel de los Soles. Venezuela's government has rejected the move it deemed "ridiculous", to label the "nonexistent" group. "This intervention, which is unfolding, can become a model for future acts of violence?against Latin American countries," Russia's U.N. Ambassador Vassily Nachzia spoke to the Security Council citing Trump's recent strategy document that stated the U.S. would reassert their dominance in Western Hemisphere. Waltz did not respond directly to the remark made by?Nebenzia. China's Deputy U.N. Ambassador Sun Lei told the council that it urged "the United States to immediately halt all relevant actions and prevent further escalation in tensions." Sun Lei, the ambassador to China, addressed the council. Venezuela, supported by Russia and China requested the meeting on Tuesday, the second to be held in response to the escalating tensions. The Security Council met for the first time in October when the United States justified their actions by citing Article 51 of the founding U.N. Charter which states that the Security Council must be informed immediately of any state's action taken in self-defense in the face of an armed attack. Venezuela's U.N. representative said: "Let us be clear that there is not a war in the Caribbean. There is neither an international armed conflict nor a non-international armed conflict. It is therefore absurd for the U.S. Government to try to justify its action by applying war rules." Samuel Moncada, the ambassador to Venezuela, addressed the council. He said, "The U.S. Government is the real threat. Not Venezuela." (Reporting and editing by Alistair Bell; Michelle Nichols)
Gold and silver records smash records as the markets wind down after a bumper year
Asian shares rose on Wednesday, capping off a year of rapid artificial intelligence-driven gains. Commodities such as gold and silver also extended their bullish trend to new highs, as 2025 approaches.
Overnight, on Wall Street the S&P 500 closed at a record high as the long-elusive Santa Claus rally finally took hold. The U.S. economic data that showed the economy expanding at a faster rate than expected in the third quarter helped boost risk sentiment, but also weighed on bonds.
Early Asian trading was dominated by gold and silver. Gold spot prices rose 0.8%, to $4,524 an ounce. This brings the year-long gain to 72%. Silver prices jumped by 1.2%, reaching a new record of $72.27 an ounce. This was the best year for silver ever, with a projected annual increase of nearly 150%.
The broadest MSCI index of Asia-Pacific stocks outside Japan rose 0.3%. The index has risen by 26% in a year, the best performance it's had since?2017.
Euro STOXX Futures, Nasdaq Futures and S&P500 futures are little changed due to thin liquidity.
Nikkei, the Japanese stock index, rose by 0.4% this year and is up 26%. South Korea's 72% surge in the stock market was the best performance for Asia this year.
Scott Chronert is a U.S.-based equity strategist. Citi's equity strategist, Scott Chronert, predicts that equities will continue to rise in value this year due to high valuations and earnings growth.
"Yet high performance dispersion in themes, sectors and markets is expected."
The yen has gained on the foreign exchange markets for the third session in a row amid the risk of intervention by Japanese authorities. The dollar fell 0.3%, to 155.78 Japanese yen. This is a retreat from the previous 158-level zone which drew interventions.
The euro remained largely unchanged at $1.18 after a 14% increase this year. The?dollar has been down around 10% against its major counterparts this year.
Treasuries rose this year due to the Fed's return to rate cuts. The yields on two-year Treasury bills were unchanged at 3.532% after falling by 72 basis points in the past year. Meanwhile, the yields on the 10-year Treasury bill traded at 4.1589% despite a 42 basis point decline for the year.
Early trades showed no change in oil prices, but the market was set for another year of declines. Brent crude futures were unchanged at $62.41 per barrel but down 16% on the year. (Editing by Shri Navaratnam).
(source: Reuters)