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European stocks remain steady in advance of Fed meeting and tech earnings
The European stock market hovered around recent highs Wednesday. New AI deals and prospects of improved U.S. China trade relations helped to boost sentiment. Traders waited for the U.S. Federal Reserve's meeting in anticipation of a 25 basis-point rate reduction. Wall Street closed Tuesday at a record-high after Nvidia revealed that it will build a new chip. seven supercomputers Microsoft and the U.S. Department of Energy A deal was reached OpenAI can restructure. During Asian trading, stocks in Japan and South Korea also reached new highs. The MSCI World Equity Index rose by less than 0.1% at 0946 GMT. The STOXX Europe 600 index was up by 0.1%. Germany's DAX fell 0.1%. France's CAC40 was unchanged. London's FTSE 100 rose 0.5%, after hitting a record high. Microsoft, Alphabet, and Meta, three American technology companies are expected to release their earnings on Wednesday. Charu Chanana is the chief investment strategist for Saxo. She said that investors want to see more than just solid numbers, but also evidence of a sustained AI monetisation. TRUMP IS EXPECTED to REDUCE US TARIFFS ON CHINA U.S. president Donald Trump was on his final leg of Asia tour. South Korea Lee Jae Myung, the South Korean leader, is optimistic that a tariff agreement still unresolved can be reached. Trump will then have talks with Chinese president Xi Jinping on Thursday in the port town of Busan. Trump says He expects Reduce U.S. Tariffs on Chinese Goods in exchange for Beijing’s commitment to curtail exports of fentanyl-precursor chemicals. Analysts warned that while the talks may ease concerns about escalating tensions in the trade war, the bar to see a reaction from the market is high. Matt Simpson, senior analyst at City Index, said that Wall Street futures are at record highs, and the bullish momentum is already waning. It's difficult to know how much excitement hasn't been priced in. "If Trump and Xi do not deliver a joint declaration with specific details, appetite for risks may require another source to continue the current moves." Markets Wait for FED Meeting Market watchers waited for the Fed meeting Later in the session when a 25 basis-point reduction is almost fully priced. The ongoing U.S. shutdown has led to a lack of economic data. Traders will be on the lookout for any comments that hint at the Fed continuing to reduce rates in December. The Fed may also announce its intention to stop its so-called quantitative tightening (QT) programme. Prospects of lower U.S. interest rates kept U.S. Treasuries Supported, with the 10-year rate at 3.9909% The benchmark German 10-year bond yield was 2.6275%. currencies The Japanese yen is currently trading at 152.25 US dollars per yen. The yen strengthened earlier in session after U.S. Treasury Sec. Scott Bessent stepped-up his criticism Tokyo's low-rate rates have been in place for a long time. The Australian dollar has risen after inflation data Prices rose faster than expected and lowered hopes of a rate reduction. The dollar index rose 0.2% to 98.833 and the euro remained unchanged at $1.1643. David Halpenny's research note on global markets stated that the post-decision response for short-term rates will depend on Powell's interpretations of inflation risks. Oil prices rose As traders were optimistic regarding the U.S. China meeting. Brent crude futures rose 0.2% to $64.55 per barrel while U.S. Crude was up 0.2% to $60.26. Safe-haven Gold traded at $4.024.29 per ounce.
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Coal India's profit for the second quarter missed expectations due to tepid demand and lower e-auction prices
Coal India - which produces about three quarters of India's coal - reported on Wednesday a 30% drop in profit for the third quarter, a decline that was larger than expected due to lower e auction premiums and tepid consumer demand. The net profit of the state-run mining company fell to $495.36 million in the second quarter ended September 30. LSEG data shows that analysts had on average expected 61.96 bn rupees. After the results, the shares of the company fell by more than 2%. Coal India’s average realization from eAuction sales was 2,292.40 Rupees per Ton, down from 2,453.92 Rupees per Ton last year. The average coal price has fallen by one rupee compared to a year earlier. Nearly 10% of the firm's sales are made through e-auctions. The prices are near-market rates. Coal India has been reported to have cut purchases and withdrawn more coal from India's power stations, despite their record-high inventories. According to data from the company, two of three months in this quarter saw a decline in production and offtake. Analysts noted that Coal India continued to fall behind other mining companies, due to a declining volume of sales and a bleak increase in demand. This led to a drop in profit year-on-year in both the second and third quarters. Revenue from operations dropped 3.2% to 301.87 Billion Rupees.
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Investors await Fed decision, Powell speech as gold gains almost 2%
Investors found gold attractive on Wednesday after the metal's price fell to a 3-week low the previous session. The Federal Reserve's rate-cut decision and Chairman Jerome Powell’s speech were also in focus. As of 0955 GMT spot gold rose 1.9% to $4,028.05 an ounce after falling as low as it has been since October 6. U.S. Gold Futures for December Delivery gained 1.5%, to $4.041.50 an ounce. Peter Fertig, Quantitative Commodity Research's analyst, said that bargain-hunting might be a good way to support gold because its price has dropped by more than 10%. This makes gold attractive because the gold story remains valid. Fertig continued, "There may also be central bank currency managers who saw a great opportunity to purchase a little more gold when the price dropped." On Wednesday, U.S. president Donald Trump started the final leg in his Asia tour by arriving in South Korea. He was optimistic that he could advance an unresolved trade deal with President Lee Jae Myung as well as reach a truce on a trade dispute with Chinese President Xi Jinping. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to erode demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases, ANZ stated in a report. Investors are looking for any comments from Powell that will be forward-looking. Gold that does not yield is a good investment in low interest rate environments and times of economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Silver spot gained 2.8%, to $48.35 an ounce. Platinum was up 1.9%, at $1,616.35, and palladium rose by 1.3%, to $1,412.01. (Reporting and editing by Ishaan arora in Bengaluru, Sherry j. Phillips, Eileen Soreng, Sonia Cheema, Sumana nandy)
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Argentina asks US appellate court to reverse $16.1 billion YPF judgement
On Wednesday, a U.S. court of appeals will decide whether Argentina has to pay $16.1 billion in compensation to investors who took control of the state-owned oil firm YPF over ten years ago. The 2nd U.S. The 2nd U.S. Burford Capital funded much of this litigation, and the investors could be rewarded with billions of dollars in the event that they prevail. Argentina would appeal a defeat to the U.S. Supreme Court. The midterm elections were a crucial event for Argentina and President Javier Milei. His party was able to win a decisive victory. Argentina warned that a large judgment could cripple the economy. It has been burdened by debt for years and is experiencing triple-digit inflation. Milei is a libertarian who believes in free markets. Since becoming president in 2023, Milei has cut public spending, reduced unemployment, and brought monthly inflation down to 2.1%. He also gave Argentina its first surplus budget in 14 years. Donald Trump, the U.S. president, has offered Milei an estimated $40 billion bailout. This includes a currency swap of $20 billion and a debt investment facility of $20 billion. YPF SHAREHOLDERS CHALLENGE 2012 EXPROPRIATION The appeal relates to Argentina's decision in 2012 to expropriate 51 percent of YPF shares from Spain Repsol, for a total value of $5 billion. This was done without making a formal tender offer to minority investors Petersen Energia Inversora or Eton Park Capital Management. Cristina Fernandez de Kirchner, the Argentine president at that time, said YPF should be renationalized, as it had failed to produce enough gas and oil to meet local demand. Petersen, Eton Park and YPF, the second and third largest investors respectively, claimed Argentina's actions had caused them billions in damages. Preska determined that Argentina had breached their obligations and ordered it to pay $14.39 Billion to Petersen, and $1.71 Billion to Eton Park. These sums represented $8.43 billion in damages plus $7.67 million of prejudgment interests at 8%. Argentina argued in its appeal that the case did not belong before a U.S. Court, that it had not waived its sovereign immunity, and that the damages awarded were grossly exaggerated, at $16.1 billion, which represented 45% of the country's budget for 2024. Argentina said that Preska had misapplied Argentine laws and that the principles of international comity or respect accorded to countries by limiting their laws' reach justified a dismissal. Petersen & Eton Park countered Argentina's flagrant contract breach could be addressed by the United States and accused Argentina for years of delaying the consequences. ARGENTINA APPEALS YPF TURNOVER ORDERS SEPARATEDLY In complex cases, the appeals court usually takes a minimum of a few weeks to make a decision. Argentina also appeals Preska's order of June 30, that Argentina turn over the YPF share to partially satisfy the $16.1 Billion judgment. The 2nd Circuit halted this order in August to allow Argentina to file an appeal. The U.S. Government has not taken any position on Wednesday's appeal. It opposes requiring Argentina's YPF shares to be turned over, claiming that it would interfere with its foreign policy and expose other countries to the same treatment. Petersen Energia Inversora SAU et al v Argentina are the cases. Circuit Court of Appeals Nos. 23-7376,23-7463, and 23-7614. Reporting by Jonathan Stempel, New York; editing by Lincoln Feast.
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Altman's vision of AI worth trillions of dollars is restructured by OpenAI to pursue scale
Altman stated that OpenAI could be the most significant company in Silicon Valley's past-sources OpenAI's ability to achieve its ambitious infrastructure goals remains a mystery Altman: Company needs to reach hundreds of billions in annual revenue Deepa Seetharaman SAN FRANCISCO Oct. 29 - OpenAI CEO Sam Altman informed employees that they were at the beginning of a new technology revolution soon after ChatGPT had been released to the public late in 2022. Altman told two former OpenAI staffers that OpenAI would soon be "the most important company ever in the history Silicon Valley", according to his comments. The US tech industry is full of ambition. Mark Zuckerberg, the Meta boss, and Jeff Bezos, Amazon's founder speak often of changing the world. Elon Musk, the Tesla CEO, wants to colonize Mars. Altman's ambitions are impressive even by these standards. Altman's plans for building out AI infrastructure are even more ambitious after he reached a deal on Tuesday with Microsoft that removed the limitations on how OpenAI can raise money. This is to meet the growing demand for AI-powered tools. Altman stated on a Tuesday livestream that OpenAI is committed to developing 30 Gigawatts worth of computing resources at a cost of $1.4 trillion. He said that he wanted OpenAI to eventually be able add one gigawatt per week, which is an incredible amount considering each gigawatt has a capital cost exceeding $40 billion. Altman stated that capital costs may halve over time. He did not specify how. Gil Luria is an analyst with D.A. Davidson. "Altman knows that in order to compete with OpenAI, he must achieve a larger scale." Altman, however, has not provided many details about how he would implement his most ambitious ideas. Altman said previously that OpenAI was exploring creative financing options. OpenAI has also struck a number of circular, unusual deals with publicly traded companies such as Nvidia. These transactions have been criticized for creating the illusion of greater growth than what is actually possible, and raising the possibility of an AI bubble. Need for TRILLIONS of Dollars Altman visited the White House in January to announce Stargate. The project is a $500 billion AI Infrastructure Project that the company has been working on along with Oracle, SoftBank Nvidia, and cloud provider CoreWeave. Altman, standing next to U.S. president Donald Trump who he once called "irresponsible", said that the initiative will create hundreds of thousands jobs. Altman said, "We couldn't do this without you Mr. President." Altman had said that Stargate would be building 10 GW in data center capacity. This has tripled since his comments Tuesday. Altman explained that these plans were just the beginning. Altman said that to support the massive investments, "eventually, we will need to reach hundreds of billions in revenue per year." OpenAI, which is expected to generate $20 billion annually by the end of this year, would have to grow 10 times faster than it does now. PATH TO IPO ChatGPT started the AI craze and forced Big Tech to invest billions to keep up. Altman has transformed OpenAI, a nonprofit dedicated to AI research, into a $500 billion corporation that is working to create AI systems powerful enough to fundamentally change society. Altman, a man who briefly considered running for governor of California in 2017, doesn't own equity in OpenAI. He earns $76,000 per year from the company. His net worth is largely derived from his investments, which include Stripe, Airbnb, and more recently, startups that are trying to capitalize on the AI boom created by OpenAI. He was already a powerful force in his 20s. Paul Graham, the founder of Y Combinator in 2008, summarized Altman, then 23 years old: "You could parachut him onto an island filled with cannibals, and come back five years later, he would be king." Altman, 40 years old, succeeded Graham in 2014 as president of the Startup Accelerator. Altman may be preparing to fund his larger ambitions, as Altman commented on Tuesday that an IPO is likely for OpenAI. Al? Al? Musk sued OpenAI because it had strayed from its non-profit goals of developing AI to benefit humanity. Musk has also criticised the Stargate project for lacking funding. This spring, former OpenAI workers supported Musk's suit, claiming that Altman was not trustworthy to put public safety before profits. Altman was fired from OpenAI two years ago after a disagreement with the board. Altman was reinstated just a few weeks later. The Hollywood film "Artificial" will focus on that period. It is due to be released next year. IMDb reports that Andrew Garfield will play Altman. He played Facebook cofounder Eduardo Saverin, in "The Social Network".
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Executives at India's MRPL say that the company has halted its Russian oil purchases to avoid sanctions risks.
A company executive said that India's state refiner Mangalore Refinery & Petrochemicals Ltd does not have immediate plans to purchase Russian oil because of the risks involved following the latest U.S. sanction on Moscow's major oil producers. Last week, U.S. president Donald Trump imposed sanctions against Rosneft, Russia's largest oil company, and Lukoil in an effort to pressure Vladimir Putin into ending the war in Ukraine. The MRPL executive who declined to name himself due to the sensitive nature of the issue said that it was hard for the company's to track back oil supplies and make sure they did not come from sanctioned parties. The executive stated that MRPL, as the only refiner in the state, exports a large quantity of refined products including diesel and jetfuel, so they must ensure sanctions are not violated. According to a company official, MRPL has enough oil for processing needs in November and December. The company buys on average 3 million barrels per month of Russian oil. The refiner will be seeking oil supply through an auction in December. MRPL operates a refinery that produces 300,000 barrels per day in the southern Karnataka State.
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Cameroon opposition leader vows to resist Biya's victory
Issa Bakary, the opposition leader in Cameroon, has dismissed the Constitutional Council’s declaration that President Paul Biya won the election on October 12. He called the ruling "fictitious" and pledged to resist. Biya has been ruling Cameroon, the oldest country in the world, since 1982. His reelection has heightened tensions in Cameroon, a cocoa- and oil-producing country. Critics accuse him of abusing state institutions to hold on to power. "The truth is in the ballot." This election was won by a wide majority. This victory does not belong to me alone, it belongs the Cameroonian People," Tchiroma stated late Tuesday night in his first address public since the council had confirmed Biya’s eighth term. Violent Protests After the ruling of the Central African Council, which was final and cannot be appealed, violent protests intensified in several towns across the nation. Local media reported that at least 10 people were killed as hundreds of protesters took to the street to denounce a rigged elections. Tchiroma, in a Facebook video, said: "We demand a stop to these barbaric acts, including the killings and arbitrary arrests. We will remain steadfast." "We won't be manipulated or frightened. "We will remain united until the final victory," said he. Cameroon’s Interior Minister Paul Atanga Nji has accused Tchiroma of inciting violence and rebellion on Tuesday after prematurely declaring his victory on October 13 In a press release, Nji stated that "this irresponsible politician, driven by a desire to force through the plot to disturb public order, repeatedly issued calls on social media to incite civil unrest." He claimed that small groups, "often under drug influence", looted stores and set public buildings on fire. He didn't provide any proof that the protesters were on drugs. Nji reported that many public and private property had been vandalised in Douala, the economic capital of the country, which experienced some the worst violence. He said that during the clashes, security personnel had been injured and attackers were killed. At a press briefing on Tuesday, the governor of the region said that more than 200 people had been arrested as a result of the protests. Reporting by Amindeh Atabong and Bate Fess, editing by Ed Osmond
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Coal India's profit for the second quarter missed expectations due to a tepid market
Coal India reported on Wednesday a 30% drop in profit for the second quarter, a decline that was greater than expected due to a weak demand and low volumes. State-owned miner's net profit consolidated fell to $495.36 million in the third quarter ending September 30. According to LSEG data, analysts expected the company to report a profit in the range of 61.96 bn rupees. After the results, the shares of the company fell by over 2%. Coal India has been reported to have cut purchases and withdrawn more coal from India's power stations, despite their record-high inventories. According to data from the company, the world's second largest coal producer, who produces mainly non-coking coal for power plants and industries, saw a decline in production. Analysts noted that Coal India continued to lag behind its peers within the mining industry, due to a declining volume of offtake and a bleak increase in sales. This led to the company posting a profit drop year-on-year in both the second and third quarters. Revenue from operations dropped 3.2% to 301.87 Billion Rupees.
Naturgy maintains its full-year forecast as gas prices continue to rise
The Spanish utility Naturgy announced on Wednesday that it is on track to achieve its full-year guidance, as it gains from its gas trading and supplies from the United States, despite higher gas and electricity prices across Europe.
In the first nine-month period of this year, net profit increased by 5.6% to reach 1.67 billion euro ($1.95 billion). The company is expecting to generate a net profit of more than 2 billion euro this year, after only 1.9 billion euros in 2024.
Naturgy reaffirmed that it would aim to achieve a full-year EBITDA of over 5.3 billion euro, which is the same as last year, despite EBITDA being 1.8% lower than in the first nine-months.
In a press release, it said that gas and electricity prices were still higher than they were a year earlier. This was against the backdrop of geopolitical tensions as well as macroeconomic uncertainty.
It said that "these factors contributed to the decoupling of gas and oil prices indexes", with oil prices still below the average for the same period in last year.
Naturgy's combined-cycle power plants in Spain have "substantially increased" their production in order to assist the system operator with voltage control and to respond to contingencies after the April 28th earthquake.
Blackout
The Iberian Peninsula was left in darkness.
The company is expecting to end 2025 with net debts of approximately 13 billion euros. This represents a ratio of debt to EBITDA of less than 2,5 times.
The board of directors approved a dividend per share of 0.6 euro to be paid on November 5. This is in addition to the same compensation already paid to shareholders back in July. Naturgy’s strategic plan, launched in February, envisages a minimum annual remuneration for shareholders of 1.7 euro, provided the company maintains its BBB rating.
(source: Reuters)