Latest News
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Merz: Germany wants to increase security cooperation with India in order to reduce Russia's reliance
Germany is looking to work more closely with India on security matters, in order to reduce India's dependence on Russia. On Merz's maiden visit to South Asia, Merz signed a memorandum to this effect, along with agreements on critical minerals and the health sector, as well as an artificial intelligence innovation center. "India and Germany?work together to build resilient, secure and trusted supply chains. Modi said at a joint news conference that the?MoUs signed today will give a new'strength and momentum to our cooperation. India is still closely involved in the security policy of Russia, from where it gets much of its military hardware, and is also one of China's largest gas and oil buyers. Germany wants India to reduce its energy imports and stop Indian companies from circumventing Russian sanctions. India has rejected this demand. Merz called on India and the European Union?to conclude negotiations on a?free trade agreement during his visit, which was intended to give a 'boost to the conclusion of a deal before the end January. Merz said that the world is experiencing "a revival of protectionism" and this harms Germany and India. Reporting by Andreas Rinke, in Gandhinagar, and Sakshi dayal, in New Delhi. Writing by Miranda Murray. Editing by Friederike Hines.
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Swedish steel startup Stegra signs a deal with Thyssenkrupp Material
Swedish steel startup Stegra announced?on?Monday that Thyssenkrupp Material?Processing Europa has signed an agreement for the?delivery of steel from Stegra’s plant that is being built in Sweden and that the German company will support the ramp up of output. The German company will purchase significant amounts of non prime steel from 2027 to supply various industries across Europe, according to a Swedish statement. Stegra explained that non-prime steel is a byproduct that does not meet the highest standards of quality that some applications require. However, it is still a durable and strong material that can be used for a variety of purposes. In a statement, Stephan Flapper, Stegra's chief commercial officer said: "A partner for?steel that is not prime is essential for the expansion of our steel mill. We?seek this as the beginning of a long-term relationship." The Swedish?group revealed that in October It was seeking The company has not yet announced a funding agreement. Reporting by Terje Solsvik and editing by Stine Jacobisen
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China to boost consumer demand with new policy measures
The copper price rose on Monday as a result of a lower dollar and the?rising hope of better demand, with China - its largest buyer - planning to?roll out a set of policies that will spur domestic?consumer?demand. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading 3.14% higher, at 103430 yuan per metric ton ($14,829.74). On January 6, it reached a record-high of 105,500 Yuan. By 0758 GMT, the benchmark three-month copper price on London Metal Exchange had risen?1.7% to $12,219.5 per ton. Benchmark reached its highest level at $13,387.5 per ton on January 6th. China's cabinet met on Friday, under the leadership of Premier Li Qiang. The meeting was aimed at implementing fiscal and financial policies that would boost domestic demand. This included initiatives to encourage household consumption. The prices of copper, used in power, construction, and manufacturing, were also supported in November by the fall in production from Chilean state-run mining company Codelco. Market attention was also focused on Rio Tinto’s talks to purchase Glencore. If the deal is successful, it could create the largest mining company in the world with a combined value of over $207 billion. The softer dollar helped base metals. The dollar is a more expensive currency for buyers who use other currencies. SHFE?nickel rose 3.44% to 141,800 yuan. Two analysts, who spoke on condition of anonymity because they were not authorized to speak to the media, stated that Shanghai tin prices reached their highest level since Mach 9, 2020 at 371,870?yuan per ton. SHFE aluminium gained 2.08%. Lead advanced by 0.58%. Zinc added 1.11%. The LME also saw an increase in aluminium, nickel, lead, tin, and zinc. Tin rose 5.88% while zinc jumped 0.97%. ($1 = 6.9745 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Gold reaches $4,600/oz first time in history as Powell-Trump spat fuels safe-haven demand
On Monday, gold broke through $4600/ounce, and silver also hit a new record. Investors bought safe-haven assets amid increased geopolitical uncertainty, and the criminal investigation into Federal Reserve Chairman Jerome Powell. Gold spot jumped 1.7%, to $4.584.74 an ounce at 0752 GMT. Bullion reached a record-high of $4,600.33 during the day. U.S. Gold Futures for February Delivery increased by 2.1% to $4,595.30. Tim Waterer, KCM Trade’s chief market analyst, said: "Iranian events, potential U.S. participation, and the Fed chair being the subject of a criminal investigation... U.S. Futures turned lower after the Powell news. This was a greenlight for gold to run higher." A rights group reported that more than 500 Iranians have been killed by unrest, while Tehran warned it would target U.S. military bases if Donald Trump follows through on his threats to strike Iran on behalf of the protesters. Iran's unrest is a result of Trump's international flexing of U.S. muscle, after he ousted Venezuelan president Nicolas Maduro and discussed annexing Greenland either by force or purchase. Powell claimed on Sunday that the Trump administration threatened to indict him for his testimony before Congress. The Fed Chair called this action a "pretext", which was meant to pressure the central banks into lowering interest rates. This sent the dollar and U.S. stock futures lower. Goldman Sachs has re-evaluated its Fed rate cut forecasts. It now expects two 25-basis point reductions to be made in June and September of 2026, instead of the previously anticipated March and June. In a low interest rate environment, and in times of geopolitical or economical uncertainty, non-yielding investments tend to perform well. Soni Kumari, ANZ commodity strategist said: "If the current situation continues, I think that (silver prices) will soon push towards $90/oz... While there is a?still uncertainty in policy and there are now some restrictions coming from China whose impact we have yet to see." Silver spot rose by 5.1%, to $84.06 an ounce. It had earlier reached a record high of $84.60. After reaching a record-high of $2,478.50 per ounce on December 29, spot platinum rose 3.3% to $2348.74. Palladium rose 2.7%, to $1864.19 an ounce. (Reporting by Ishaan Arora in Bengaluru; Editing by Sumana Nandy and Subhranshu Sahu)
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India's steel exports grew by a third from April to December, according to government data
India has been a net exporter for the past nine months, reaching 4.8 million metric tons. This is a 33.3% increase from the previous year. Data showed that the second largest crude steel producer in the world imported?4.65 millions metric tons finished steel during the same period. India's steel imports will be reported by country later this month. The government introduced an import tax on certain steel products in December to curb the cheaper shipments, mostly from China. The local levy is called a safeguard duty. It will be applied at 12%, followed by 11,5% the second year, and 11% the third. The data shows that India produced 117.6 millions metric tonnes of finished steel between April and December, while the consumption was 119.3million metric tons. According to data, the production of crude steel during this period was 123.9 millions metric tons. According to the commodities consultancy BigMint, in January, Indian steelmakers increased prices for hot-rolled 'coils' and cold-rolled 'coils by up to 2,000 rupees (US$22.19) a metric ton. The consultancy reported that the price of hot-rolled coils ranged from 50,250 to 51,250 Indian rupees for a metric tonne. ($1 = 90.1413 Indian Rupees) (Reporting and editing by Ronojoy Mazumdar).
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Reliance Industries of India says its battery manufacturing plans are on track
Reliance Industries, an Indian conglomerate, said Monday that it has not changed its plans for battery storage manufacturing. This follows a report by Bloomberg News that the company had "paused" plans to manufacture lithium-ion batteries in India because they were unable to obtain Chinese technology. In an email, a spokesperson for the company stated that "Reliance Industries categorically and strongly affirms that our plans to create a world-leading battery storage manufacturing ecosystem from Cell (cellular energy storage system) to containerised ESS are not changing and they're progressing in line with their target timelines." Bloomberg News reported that the Mukesh Ambani led?conglomerate was in talks with Xiamen Hithium Energy Storage Technology, a Chinese company, to license cell technology. The report cited anonymous sources. Reports said that the talks stalled when Xiamen backed out of the partnership after China imposed a 'curb on technology transfers overseas in key sectors. This prompted Reliance to refocus its efforts on the assembly of battery energy storage systems. Could not immediately verify the report. Beijing announced export controls of lithium battery parts in October last year, forcing exporters to obtain permits. This tightened China's grip over technology crucial for energy storage and electrical vehicles. Reporting by Chandni Monnappa and Chandini Shah in Bengaluru. Editing by Subhranshu Sahu and Sherry Jacob Phillips.
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Gold surpasses $4,600/oz after Powell-Trump spat fuels safe-haven demand
On Monday, gold broke through $4600/ounce, and silver also reached a record-high, as investors rushed to buy'safe-haven' assets due to increased geopolitical uncertainty and a criminal investigation into Federal Reserve Chairman Jerome Powell. By 0619 GMT, spot gold had risen 1.4% to $4572.36 an ounce. Bullion reached a record-high of $4,600.33 during the day. U.S. Gold Futures for February Delivery firmed by 1.8% to $4.583.20. Tim Waterer is the chief market analyst at KCM Trade. He said: "So between the events in Iran and possible U.S. involvement, as well as the Fed chair being the subject of a criminal investigation, U.S. Futures turned lower after the Powell news, which gave gold a boost." A rights group reported that more than 500 Iranians have been killed by unrest, while Tehran warned to "target" U.S. bases if Donald Trump follows through on his threats to strike the country in support of protesters. Iran's unrest is a result of Trump's international flexing of U.S. muscle, after he ousted Venezuelan president Nicolas Maduro and discussed annexing Greenland either by force or purchase. Powell stated on Sunday that the Trump administration threatened him with a criminal investigation over his testimony to Congress, a move the Fed Chair referred to as a "pretext". This was done in order to pressure the central banks into lowering interest rates. The dollar and U.S. stock futures fell as a result. Goldman Sachs has re-evaluated its Fed rate cut forecasts. It now expects two 25 basis-point cuts in June and September of 2026, instead of the previously anticipated moves in March?and June. In a low interest rate environment, and in times of geopolitical or economical uncertainty, non-yielding investments tend to perform well. Soni Kumari, ANZ's commodity strategist said: "If the current situation continues to be as it is, I believe (silver prices) will soon push towards $90/oz. There is a lot of policy uncertainty at this time and there are now some restrictions coming from China whose impact we have not yet seen." Silver spot rose 5.4%, to $83.26 an ounce. It had earlier reached a record high of $84.58. After reaching a record-high of $2,478.50 per ounce on December 29, spot platinum rose 3.5% to $2351.25 an ounce. Palladium rose 2.8%, to $1865.50 an ounce. (Reporting by Ishaan Arora in Bengaluru; Editing by Sumana Nandy and Subhranshu Sahu)
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As Trump-Fed dispute deepens, stocks wobble and the dollar drops
Dollar fell and U.S. Equity Futures?eased after Federal Reserve chair Jerome Powell claimed that the Trump administration had threatened him with criminal?indictment. This stoked concerns about the independence of the central bank. S&P futures fell 0.5%, and gold reached a?another?record?high as a reaction to the intensification of the dispute between U.S. president Donald Trump and Fed. The Swiss Franc gained 0.4%, to 0.7979 dollars. The euro rose 0.17% at $1.1656. The news is unsettling for traders, but the immediate impact on interest rates is not clear. Fed funds futures has added about three basis point more in cuts in this year. This is small, but it points to the possibility that the Fed will be pushed to become more aggressive. Gold prices rose to a record $4,600 per ounce due in part to geopolitical tensions. Unrest in Iran also boosted precious metals and supported oil. European stock futures dipped, but Asian stocks rose Monday, led by the tech sector. Data on Friday revealed that the U.S. labour market was not rapidly deteriorating despite a slowdown in employment growth. The Japanese markets were closed on a public holiday. TRUMP VS POWELL Powell claimed that the Trump administration threatened him with a criminal prosecution and served grand jury subpoenas for Congressional testimony he provided last summer about a Fed building project. He called this action a "pretext", a way to pressure the central bank into lowering interest rates. These developments represent a dramatic intensification of the conflict between Powell and Trump that dates back to Powell's first year as chairman in 2018. Andrew Lilley is the chief rates strategist for Barrenjoey Investment Bank, a Sydney-based investment bank. "He's only doing this because he knows he won't be able to control the Fed. He wants to exert all of the pressure he can." Investors won't like it, but this shows that Trump doesn't have any other levers. The majority of FOMC members want the cash rate to remain at that level. DOLLAR IN SCRATCHHAIRS Even against currencies that are typically considered risky, such as the Australian and New Zealand dollar, the dollar's reaction was the most pronounced. The dollar index fell 0.3% and is on course for its biggest?one day decline since mid-December. The dollar's 2025 was a disaster. It dropped more than 9% compared to major peers as interest rates differentials shrank as the Fed cut its rates and concerns about?U.S. Fiscal deficits and political unrest were a major concern. Ray Attrill, head of currency strategies at National Australia Bank, said: "This open war between the Fed and U.S. Administration... is clearly not good for the U.S. Dollar." Trump's threats of intervening in Iran where protests are escalating against the clerical regime have helped oil prices to hold their recent gains. They also highlighted the geopolitical risks that will be looming for the coming year. Brent crude futures, the benchmark for oil prices, were down 40 cents at $62.90 per barrel after recent sharp gains. In the second week of 2019, we will see U.S. inflation figures, Chinese trade figures and an array of U.S. earnings starting with JPMorgan Chase on Tuesday and BNY. (Reporting and editing by Thomas Derpinghaus, Jamie Freed and Ankur Banerjee)
Morning Bid Europe-Powell’s punch back shocks markets
Ankur Banerjee gives us a look at what the future holds for European and global markets
Investors still can't wrap their minds around the latest escalation of the fight between U.S. president Donald Trump and the Federal Reserve. Chair Jerome Powell is fighting back against the "effort" to control interest rates and the Fed.
The growing unrest in Iran where, according to an international rights group, more than 500 people were killed, underscored also the geopolitical issues that markets will be navigating by the beginning of 2026. This is why safe-haven assets are well supported.
The markets opened trading on Monday after the Trump administration announced that it had threatened to prosecute?Powell for Congressional testimony he made last summer regarding a Fed building remodeling project. Powell claims it's "a pretext" for him to gain influence over the central banks and monetary policies.
Powell stated that the question is whether or not the Fed can continue to set rates of interest based on economic and evidence-based criteria, or if instead "monetary policy" will be dictated by political pressures or intimidation.
Although the immediate market reaction was to sell dollars and lower stock futures, what this means for interest rates wasn't clear. Investors sought safety as gold prices broke $4,600 an ounce for first time.
The news was disturbing, but the market's reaction was measured. Investors waited for clarity about the Fed's autonomy, and the direction of rates in the short term.
Markets may now expect that the Fed will kowtow and freely cut rates once the new Fed head settles in after May, when Powell's tenure ends. Futures pricing shows two rate cuts for the year.
As the Japanese markets were closed on Monday, no cash trading was conducted in Treasuries during Asian hours. Once London opens, the focus will shift to the Treasury market.
Market developments on Monday that may have a significant impact
Economic event - Germany balance account for November and euro zone sentix for January
(source: Reuters)