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Tech stocks drop on a weekly basis due to a sour mood
Investors are uneasy with the pace of the artificial intelligence stock rally, and have shifted their focus to safer assets like bonds and the Japanese yen. S&P 500 and Nasdaq futures firmed up a bit in Asia's morning. However, overnight the Nasdaq fell 1.9%. The world's largest tech index has fallen 2.8% this week. If that trend continues, it would be the biggest drop in a single week since March. This is a shock for an juggernaut which had gained more than half its value from the lows reached when tariffs were first announced in April. In morning trading, Japan's Nikkei dropped 1.8%, resulting in a loss of 4.7% for the week, the biggest since late march. Meanwhile, in Seoul, the Kospi declined 1.4%, resulting in a fall of 3.3% for the week, its worst weekly drop since late mars. Softbank Group Corp, a tech investor, fell more than 20 percent this week. Chip and cable manufacturers were also among the worst performers. Bitcoin, which is sometimes used as a barometer for tech sentiments, has fallen 8% this week to $101,092. MOOD SHIFT The pullback of AI-related shares has not been triggered by any obvious event, but the reaction to recent results reveals that some fears are beginning to surface about the possibility of a bubble and profitability questions. Meta's stock plunged late last month after it revealed large capital expenditures as the company builds data centres to support its AI push. Palantir Technologies, a data and AI company, has also seen its shares fall despite exceeding earnings expectations. Herald van der Linde is the head of equity strategies for Asia Pacific, HSBC. "And another one says it. Then a third. A fourth person says that these three are all selling. It's possible that I am selling, too. It's just a change in market sentiment. This could be happening now." Overnight, the S&P 500 index closed down 1.1% and the Philadelphia SE Semiconductor Index fell 2.4%. BONDS, YEN HIGHER Bond markets rose on the back of a demand for safety, and as second-tier U.S. data indicated a wave layoffs which could support future rate cuts in the U.S. The benchmark 10-year U.S. Treasury rates fell 6.4 basis point overnight to 4.09%, after Challenger, Gray & Christmas, an outplacement firm, said that there was a spike in job cuts announced in October. These private surveys have attracted attention on the market, while the prolonged U.S. shutdown has stopped official U.S. data publishing. The dollar fell overnight by nearly 0.5% to $1.1546 a euro. The dollar was last, at 153.17 Japanese yens and 0.8069 Swiss francs. The pound soared after the Bank of England held interest rates, but the possibility of a rate cut in December limited gains. It traded at a slight discount to $1.3128 on the Asian market. Gold held steady at just under $4,000 per ounce. Brent crude remained at $63.64 per barrel. (Editing by Shri Navaratnam).
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Australian shares flat as financials counter energy, real estate strength
Australian shares were little altered on Friday as gloomy performances in the financial sector following a disappointing profit half-year from Macquarie, a top investment bank, partially offset gains in local stocks in energy, real estate and healthcare. As of 2349 GMT the S&P/ASX 200 was flat at 8,826.80, and is on course for its second consecutive weekly loss if current momentum continues. Macquarie Group shares fell 5.5%, their lowest level in over five months. The lender missed expectations on its half-year profits due to a lacklustre commodity division. CBA, the top lender in Australia, lost 0.8% and ended a winning streak of two sessions during which they had gained 2.5%. Westpac shares also dropped 0.8%, after reaching a record-high on Wednesday. The broad financial index fell 0.6% on the Friday, but it was still on track to achieve its best performance for a week since late September. The benchmark index fell 1.4% following a poor close on Wall Street over night amid a sell-off in the tech sector. The shares of WiseTech Global, Xero and each other fell more than 1%. Rio Tinto, Fortescue and BHP all fell more than 1%. Rio Tinto was down by 0.2%, Fortescue by 0.5%, and BHP 0.5%. Gold miners recovered some of their losses by rising 1.1% on the back of a falling dollar, a surge in safe-haven demand and concerns about a long U.S. shutdown and the legality and legitimacy of tariffs. The shares of Northern Star Resources and Evolution Mining rose by 1.1% and 2.2%, respectively. The energy subindex rose by nearly 1%. Woodside Energy and Santos gained 1.6% and 0.6% respectively. The healthcare sub-index rose 0.6% while the real estate index climbed 0.4%. Qantas shares fell 4.1%, their lowest since mid-May. The Australian airline lowered its domestic unit revenue projection for the first half 2026. It also flagged an increase in fuel prices. The benchmark S&P/NZX50 index in New Zealand rose 0.4% to 13,625.29.
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China's Vice Premier urges the end of trade barriers that are holding back green transformation
Ding Xuexiang, vice premier of China, called on fellow leaders to show "true multiculturalism" at the climate summit held in Brazil. Ding, via a translation, said: "We must strengthen international collaboration in green technology and the industry, remove trade obstacles, and ensure free flow of high-quality green products, to better meet global sustainable development needs." Ding told the official Xinhua News Agency on Friday that the developed countries must fulfill their obligation "to lead in emission reduction and honour their funding commitments", as well as provide more assistance to developing countries. He said that China was willing to work with other parties to "persistently encourage green and low-carbon development". In September, Chinese President Xi Jinping stated that China aimed to reduce its economy-wide greenhouse gases emissions by 7% - 10% by 2035 compared to their peak. He said that as part of China's national determined contribution targets by 2035, the country's consumption of non-fossil fuels will represent more than 30%. (Reporting from William James in Belem, and Farah Masters in Hong Kong. Editing by Brad Haynes & Michael Perry).
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Safety fears hinder rescue efforts in South Korea after power plant collapse.
Fire and rescue officials reported that a worker died and six others remain trapped after a large structure collapsed at a South Korean power station being prepared for demolition. On Thursday afternoon, workers were removing parts of a massive steel structure that was a decommissioned heating system when it collapsed. The footage from the scene shows the structure toppled and mangled, surrounded by other structures. Kim Jung-shik, a fire official, told reporters that two people were rescued quickly and then another two were found under the rubble. He said that one worker died early Friday morning and another's condition was still unknown. Rescuers used heat sensors, remote scoping and search dogs to help locate other trapped workers. However, their efforts were hampered by a risk of further collapse, said he. The South Korean president Lee Jae Myung has called for a full-scale effort to rescue the trapped workers. (Reporting and editing by Ed Davies.)
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France launches $2.5 billion initiative for Congo forest protection
A document seen by revealed that European nations have thrown their weight behind a plan worth $2.5 billion to save the Congo forest. This conservation scheme could steal some of the thunder from Brazil's flagship initiative for the COP30. The U.N. Climate talks are being held this year in the Brazilian Amazon to draw attention to the issue of emissions caused by rampant deforestation. The initiative, led by France, is called "The Belem Call to the Forests of the Congo Basin". It has the backing of Germany, Norway and Britain. The initiative's supporters hope to mobilize resources in order to protect the second largest rainforest on earth. Five European nations signed the document in French dated 6 November. The document stated that "the donors are... committing themselves to mobilize over $2.5 billion in the next five year period, on top of the domestic resources which will be mobilized for the protection and management of forests of the Congo Basin by Central African countries." Signatories also said that they aimed to assist African nations in reducing deforestation by using technology, training and partnership. The Congo, the Amazon, the world's biggest rainforest, and the Borneo-Mekong-Southeast Asia basin, the third-largest, all face threats from expanding farm frontiers, logging, mining, and other industries. The Congo's protection has attracted attention, as it absorbs more greenhouse gases net than any other forest. However, the timing was not in sync with Brazil's priority of a global fund for forests that is central to its COP30 agenda. The Brazilian President Luiz inacio Lula da So has hailed the Tropical Forests Forever Facility as the future of climate financing because it replaces grants by a more scalable model. A diplomat who is familiar with both initiatives said that "in theory, they are both very different." He noted that the TFFF offers annual payments without strings to rainforest nations. The source said that the two rainforest funds competing with each other may not be helpful. Norway The TFFF has pledged $3 billion On Thursday, the largest contribution to date was made. France has said that it will contribute up to 500 millions euros to the Brazilian initiative. Reporting by Lisandra paraguassu from Belem, and Simon Jessop from Sao Paulo. Editing by Brad Hayes and Diane Craft.
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Stellantis cancels supply agreement with Alliance Nickel in Australia
Alliance Nickel, a company based in Australia, announced on Friday that carmaker Stellantis would terminate its supply agreement for battery-grade cobalt and nickel from the NiWest Project as of December 3. The reason given was missed milestone deadlines. The company blamed the delays on the challenging conditions of the global nickel markets, which had limited the opportunities for financing. Alliance is the latest Australian manufacturer forced to renegotiate its supply agreements with automobile manufacturers. The miner stated that nickel prices are still under pressure and have been for the past two-years, making it hard to finance new projects. Alliance says that weaker prices has affected its financial position and it is delaying other commitments as it works to secure sufficient financing for the NiWest Project in Western Australia. According to Alliance, Stellantis, which makes Jeep, Fiat, and Chrysler, has expressed a willingness to renegotiate offtake terms. Alliance Managing Director Paul Kopejtka stated, "We acknowledge that this is a good chance for both parties to negotiate a new contract that reflects the revised project development schedule and forward strategy." Early trading saw shares of Alliance fall as much as 6,4%. The two companies have signed an agreement in 2023 to supply 170,000 tonnes of nickel sulphate, and 12,000 tonnes of cobalt sulfurate, over a five-year initial period. This represents about 40% of NiWest’s projected annual production. The deal at the time highlighted Australia's increasing role as a major supplier of battery materials essential to the production of electric vehicles. A 2023 deal also saw the Italian-French consortium acquire an 11,5% stake in Australian company. Stellantis, the company formed by the merger of Fiat Chrysler with Peugeot maker PSA in 2021, cancelled the deal for the second time. Stellantis pulled out of an agreement earlier this week with Australian battery material supplier. Novonix Inability to agree upon product specifications was cited as the reason for the dispute.
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MP Materials' quarterly loss increases after sales to Chinese clients are halted
The U.S. rare-earths company MP Materials reported on Thursday that its third-quarter losses widened due to the suspension of sales to Chinese clients as part an agreement with the U.S. Government, even though the results exceeded Wall Street's expectations. After-hours, shares fell 7.4% to $48,40. The company has shifted its focus from relying on foreign sales, to becoming a major U.S. miner of rare earths. It also focuses on manufacturing magnets from these materials that are widely used in the automotive and electronics industries. MP is the owner of the only U.S. mine for rare earths and has plans to build a magnet plant in Texas. Las Vegas-based company MP reported a quarterly loss totaling $41.8 million or 24 cents per common share. This compares to a loss amounting to $11.2 million or 16 cents a share in the previous quarter. Without one-time items MP lost 10c per share. According to LSEG, analysts had expected a loss per share of 18 cents. During the third quarter, there were no sales of rare earths concentrator. These sales were the company's main source of revenue for many years. However, a July agreement with the Pentagon prevents future shipments. In accordance with the agreement, on October 1, the Pentagon began to guarantee a price floor of $110 per kilo for the two rare earths most popular, neodymium & praseodymium. MP executives confirmed this on a conference phone call with investors. CEO SEES NEW COLD WAR Jim Litinsky is the CEO of the miner. He described what he believes to be a "new Cold War", between Washington and Beijing, requiring investment by government in key industries. Litinsky, speaking on the investor's call, said: "In the Cold War of the past, America won through military might, backed by economic strength." He said that "in Cold War 2.0, the equation is reversed." "Economic power, as expressed by control over critical materials, advanced technology, and supply chains that support them, is now the decisive measure for national power." Litinsky is also one of the largest shareholders of MP. He added that he didn't believe most of its competitors could compete. Litinsky stated that "the vast majority of the projects being promoted will simply not work at any price." NEW FACILITY ONLINE SOON MP recorded $21.9 million of sales in the first quarter for magnetic precursors, which are the building blocks to magnets. MP expects to start commercial magnet production at its Texas facility by the end the year. MP had to construct a facility for the processing of so-called "heavy rare earths" in order to make magnets. The company plans to start up the facility by mid-2026, using ore from its California mine as well as third-party purchases. This facility will produce 200 metric tonnes of terbium and dysprosium per year - the two heavy rare earths that are used in magnets. (Reporting and editing by Bill Berkrot, Jamie Freed and Ernest Scheyder)
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Brazil raises 2.25 billion dollars in bond sales, including new sustainable notes
Brazil raised $2.25bn on Thursday through a new dollar-bond sale. This was its fourth international market transaction this year. It also included sustainable notes, as the country hosts world leaders at the United Nations Climate Summit. Brazil's Treasury issued a statement saying it had sold $1.5 billion of new sustainable bonds that are due in 2033, and $750 million more through a retap on its benchmark 10-year bond. IFR, a fixed-income news service, was the first to report on these values. Treasury said the 8-year bond was issued with a 5.75% yield, while the 2035 bonds have a yield 6.2%. This is the busiest year Brazil has had for bond sales abroad since 2010, when Brazil also issued four international bonds. Treasury says the new sustainable bonds demonstrate the government's commitment towards sustainability in the face of increasing demand from foreign investors. This deal was launched in the Amazonian town of Belem on the eve before the COP30 Conference. It is Brazil's 3rd sustainable bond issuance after its debut at the end of 2023. Brazil has already raised $8.4 billion through the traditional sovereign bond sale in February, June, and September. The order book reached a maximum of 150 people. This issue was a big hit with investors. The demand exceeded the volume of the issue by three times," said the statement. The government stated that the issuance aims to also boost liquidity along sovereign dollar yield curves, provide a standard for corporate issuers, and help prefinance future foreign debt maturity dates. Citibank, Deutsche Bank, and Goldman Sachs were the main players in this transaction. (Reporting and editing by Aida Pelaez-Fernandez, Aurora Ellis and Bernardo Caram)
Russia says Ukraine's idea of $30 oil cost cap \beyond all bounds\
Russia said on Thursday that the United States was not likely to accept a Ukrainian proposal to lower the price cap on Russian oil to $30 a barrel because it would roil international energy markets and damage the U.S. economy.
After Russia sent troops into Ukraine in 2022, the West sought to sink the Russian economy by enforcing a myriad of sanctions and in 2022 slapped a $60 a barrel price cap on Russian oil << URL-PRMSK >, which is currently traded at around $68. per barrel.
Before the cap was set, Ukrainian President Volodymyr. Zelenskiy in November 2022 advised a limitation in between $30 and $40 per. barrel.
The $60 cap has actually up until now been preserved despite variations. in the oil price and calls by some countries for a lower cap to. further restrict Moscow's earnings.
The United States has actually enforced sanctions on dozens of tankers. suspected of bring oil above the price cap agreed by G7, the. EU and Australia.
President Vladimir Putin says Russia's wartime economy--. which grew 3.6% in 2015-- has grown in spite of the sanctions,. which Russia, the world's second biggest oil exporter, has. plenty of buyers for its oil.
Recently I check out that Ukraine was trying to convince. the United States to decrease the cap price on Russian oil to $30 a. barrel, Russian Foreign Minister Sergei Lavrov stated in an. interview released on the Foreign Ministry site.
This exceeds all bounds.
It is significant that the United States is unlikely to go. along with Ukraine, Lavrov stated. He argued that such a lowering. of the cap would have a serious influence on both the global oil. market and on the U.S. economy.
Russia has more than 5% of the world's tested oil reserves. and about of quarter of the world's tested gas reserves. while OPEC, led by Saudi Arabia, controls about 80% of the. world's oil reserves, according to OPEC figures.
SAUDI ARABIA
Lavrov, Putin's foreign minister since 2004, stated that the. United States put immense pressure on the House of Saud in the. 1980s to collapse the cost of oil to weaken the Soviet Union.
Inquired about relations with Saudi Arabia, whose crown prince,. Mohammed bin Salman, praised Putin on his election on and. who has cooperated closely with Moscow as part of the OPEC+. group, Lavrov stated Saudi had actually pursued its own policy.
I would not state that they have actually set a course away from the. United States, Lavrov stated.
They just decided to pursue their national policy so that. nobody (from the left or the right, or from above or from below). need to interfere with them, consisting of, many of all, the United. States.
While Russia says it will never give in to the United. States, which Putin casts as a declining empire battling a proxy. war with Russia in Ukraine, Russia's energy sector has actually dealt with. severe challenges from the fallout of the war in Ukraine.
Russia's Gazprom has lost most of the European. market - which Moscow spent about half a century slowly building. after the Soviets created gas pipelines westwards from Siberia in. the early 1970s.
Putin's quote to reorient Russia's huge energy exports. eastwards faces massive difficulties - both the large distances to. Asian markets and the tough negotiations with China about. the rate.
There will be no lack of consumers. Take Africa - we. have doubled the export of petroleum items there over the. past year and a half, Lavrov said.
He stated China and India would be able to soak up oil supply. from the OPEC+ group of leading oil producers.
(source: Reuters)