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Georgia voters remove GOP utility commissioners due to rising electricity prices
Georgia voters ousted two Republican utility commissions on Tuesday night over rising electricity rates. This could be a sign of consumer anger against data centers, and Republican President Donald Trump’s aggressive push for nuclear power. Utility regulators across the country are forced to consider the costs of billions of dollars in infrastructure projects, including new transmission lines and new generation. Some consumers are paying higher rates because demand exceeds supply. One Wall Street firm has reacted quickly to the results of the special elections, downgrading Southern Co's stock from "Buy" to "Hold". Analysts at Jefferies referred to the election result as a "resounding Republican defeat" and stated that it would increase the risk profile for Georgia Power, an unit of Southern Co. and make it more difficult to raise electricity rates. According to a Georgia Public Service Commission survey, summer electric bills for Georgia Power users of 1,000 kilowatts increased by 41% and reached nearly $190 per monthly. Alicia Johnson, a Democrat, and Peter Hubbard, a Republican incumbent commissioner each won more than 60% votes. The two Democrats will now sit on the Georgia Public Service Commission which regulates utilities and sets rates for electricity. Johnson and Hubbard both ran campaigns to promote fair electricity rates and a greater emphasis on renewable energies. Their online campaigns stated that electricity rates had increased six-fold in the last two years. Georgia's electric bills reflect the massive cost overruns of the construction of two Vogtle reactors. The reactors were built seven years late and cost $35 billion. According to Georgia regulators, this was more than twice the initial estimate of $14 billion. Patty Durand of Georgians for Affordable Energy called the election as a referendum against nuclear power. Last week, Trump announced an $80 Billion deal to purchase nuclear reactors from Westinghouse. This is the same company which went bankrupt in 2017 due to cost overruns on the Georgia nuclear project. Analysts estimated that electric customers will pay between $36 and $43 billion more over the 60 year lifecycle of two Vogtle nuclear reactors compared to a gas-fired alternative fuel source. Durand stated that Georgia electric customers receive bills that look similar to monthly car payments. (Reporting by Tim McLaughlin, Editing by Aurora Ellis).
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Dollar extends recent gains as stocks climb on tech share rebound
The stock indexes rose on Wednesday, as the dollar continued to rise and U.S. payrolls data came in stronger than expected. According to a survey of economists, the U.S. private sector payrolls increased by 42,000 in October. This was more than double what most expected. Some industries, such as professional services, have lost jobs for the third consecutive month. Private payroll data is closely scrutinized in light of the U.S. shutdown and the ongoing concerns about the weakness of the labor market. U.S. president Donald Trump has again asked Republican senators in an effort to end the longest government shut down in history to stop the filibuster. After a sharp drop on Tuesday, the semiconductor index rose 2.5%. Advanced Micro Devices shares rose 0.5% following a positive revenue forecast given by the company on Tuesday. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. He said that the ADP numbers suggested that if they aligned with the official figures - when finally released - that the fears over the job market might have been overstated. He said that the possibility that the U.S. government shutdown will end adds to the optimism. The Dow Jones Industrial Average grew 59.92, or 0.12% to 47,139.89. The S&P 500 climbed 28.01, or 0.41% to 6,799.59. And the Nasdaq Composite grew 149.16, or 0.64% to 23,498.37. The MSCI index of global stocks rose by 1.48 points or 0.15 percent to 998.31. The pan-European STOXX 600 rose by 0.38%. Asia stocks took a heavy hit overnight. The Nikkei 225 index in Japan fell nearly 7% at one point from its record highs on Tuesday. Shares in South Korea dropped as much as 6,2%, before recovering some of their losses to fall by 2.9%. The global stock market has been swept by a wave of enthusiasm for generative artificial Intelligence this year. It's been compared to the dotcom boom. Since last week, when the Federal Reserve lowered interest rates by 25 basis point and Fed Chair Jerome Powell stated that a December rate cut was not predetermined, the dollar has strengthened against the euro. The euro fell 0.04% to $1.1477. The dollar gained 0.38% against the Japanese yen to reach 154.26. After recovering from its earlier losses, the leading cryptocurrency Bitcoin gained 3.25% and reached $103,565.86. It fell 6.1% to $99,000 on Tuesday, the lowest level since June 22. The yields on U.S. Treasury bonds rose after economic data showed that the economy is still resilient. The yield on the benchmark 10-year U.S. notes increased 5.4 basis points from late Tuesday to 4.145%. Gold prices increased. Gold spot rose 1.26%, to $3981.49 per ounce. U.S. crude dropped 0.38% to 60.33 per barrel. Brent was down to $64.27 a barrel, a 0.26% drop on the day.
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S.African mine will close after ArcelorMittal stops purchasing iron ore
African Rainbow Minerals, a South African company, announced on Wednesday that the mine, which is jointly owned by ARM and ArcelorMittal South Africa (the ailing steelmaker), will be put on "care-and-maintenance" following the cessation of purchases from its only customer. Beeshoek Mine is temporarily closed for maintenance and care as owners assess other options in case the market conditions change. The mine's mining operations ceased at the beginning of October. About 622 permanent employees will be laid off on November 30. Beeshoek - operated by Assmang – a joint venture of ARM and the international miner Assore – stopped deliveries to ArcelorMittal at the end of July after a long-term agreement expired in June. This ended a decades-long relationship. ArcelorMittal South Africa continued to buy iron ore month after month, but stopped all purchases on July 27. ARM stated that an extensive review was conducted of the operational, financial and commercial alternatives for the mine. The mine is old, has legacy infrastructure, and its cost base is heavily dependent on ArcelorMittal’s offtake. The group stated that "Beeshoek Mine's operation is no longer feasible due to the lack of a sustainable offtake agreement." The statement said that the consultations with the unions in South Africa under the Labour Relations Act had been completed and that the Department of Mineral and Petroleum Resources was notified of this shutdown. The decision confirms an August warning, when Assmang informed unions that it was considering closing after ArcelorMittal refused to sign a three-year contract. ArcelorMittal South Africa struggles with a weak domestic demand, high electric costs, poor logistics, and competition from Chinese imports. The company has also delayed the closure of the long steel plants at Newcastle and Vereeniging while it continues to hold talks with the South African Government and labor representatives. Reporting by Sfundo Parakozov, Nelson Banya and Emelia Sithole Matarise; editing by Emelia S. Matarise.
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TSX rebounds with resource-focused shares lifting
Canada's benchmark stock index rose on Wednesday. It recovered from the previous days' sell-off, thanks to the strength of commodity-linked stocks, and investors also digested an unexpectedly positive U.S. payrolls report. At 10:07 am. The S&P/TSX Composite Index in Toronto was up 0.84% at 30,027.94. Gold sub-index was the sector's leader with a 2.6% increase, following gold prices as investors shifted away from risky investments to metals that are considered safe havens. Gold has played a major role in the TSX's movements. When gold moves higher, the market tends to move up with it, said Allan Small. Senior investment advisor with Allan Small Financial Group at iA Private Wealth. The regional materials index rose by 1.6%. The gains on TSX are also influenced by Wall Street. Wall Street's benchmark S&P500 gained 0.24% after ADP reported that private payrolls in the U.S. rebounded dramatically in October. Investors looked for clues about the Federal Reserve’s monetary policies amid a U.S. Government shutdown and a lack of important jobs data. The S&P/TSX Composite index had a fantastic 2025. It was up 21.3% largely due to lower borrowing costs and a rise in gold prices. Trade tensions between the U.S. and Canada, which affected trading activity at the start of the year, have increasingly had little effect on the market sentiment. The TSX rebounded with most sectors in the green after a 1.6% drop in the previous session, when major U.S. Bank CEOs raised concerns about stretched valuations and warned of a possible equity downturn. Small said, "It is just one of those things that you wake up to and everyone's questioning the valuation on tech stock, whether it be semiconductors or chips generally." Suncor Energy, which beat third-quarter profit expectations, saw a 5% jump after beating the index. SSR Mining shares fell 10.6%, among other moves. This was after the company missed revenue forecasts for the third quarter. First Majestic Silver fell 11% when its third-quarter earnings failed to impress investors. (Reporting and editing by Avinash Sharma and Nikhil Sharma)
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Orsted has said it does not plan to merge with Equinor Renewables.
Orsted, the Danish offshore wind company, said that it has no plans to acquire the renewables division of Equinor. Equinor is its second largest shareholder and had proposed closer ties with Orsted. Equinor is a Norwegian oil and gas group that also produces renewable energy. It took a 10% share in Orsted in October last year, and invested close to $1 billion into the company. Last week, it said that offshore wind needed consolidation. Orsted shares are down 85% since their peak in 2021, due to rising costs, disruptions of the supply chain, and challenges in the United States, where President Donald Trump tried to stop ongoing developments and suspend new licensing. The ORSTED POURS cold water on the TIE-UP idea Analysts have suggested that Equinor could benefit from spinning off and merging its renewables unit with Orsted. The Norwegian group's Chairman told its board in September to be open-minded about the possibilities of its ownership. Orsted's top executives threw cold water on Wednesday on the idea. Trond Westlie, Chief Financial Officer of the company, told analysts on a conference call that "we have no such plans". Orsted CEO Rasmuserrboe stated that the company was grateful for the continued support of its second largest shareholder but focused on its own business. He said: "I have also noted the comments that you made (from Equinor).... My focus is to achieve our plans and our strategy quarter by quarter." Errboe continued, "I am confident that Orsted has a business model which is very suitable for offshore wind." Equinor reiterated in September that it will remain a long term investor in Orsted, and announced its intention to nominate someone to Orsted's board. Orsted is owned by the Danish government, which owns 50% of the company. (Reporting and editing by Terje Solsvik, Conor Humphries and Nerijus Adomiaitis)
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Raw sugar prices fall to a five-year low, while cocoa prices also decline
Raw sugar futures fell to their lowest level in five years on Wednesday. The potential for a large global surplus during the 2025/26 crop season is weighing on the prices. Dealers say that the expected increase in sugar production in India, which is the second largest producer in the world, has added to the concern about excess supplies, as the forecasts of the size of the anticipated global surplus in 2025/26 begin to grow. Raw sugar futures fell 0.1% to 14.21 cents a lb at 1445 GMT, after hitting a low of 14.05cents. It appears that the cane used to make ethanol is less than expected. This may be due to favourable rains during monsoon season this year. In a recent note, broker Czarnikow stated that "we now think India will produce more than sugar in 2025/26 with 32.8 million tonnes due to less sucrose going to ethanol." India produced approximately 26.1 million metric tonnes in 2024/25. Czarnikow increased its forecast of the global sugar surplus in 2025/26 by 1.2 millions tons to 8.7million tons. White sugar increased 0.1%, to $413.90 per ton. Futures cocoa prices eased as a result of the continued concern about weak demand following last year's price surge. Barry Callebaut announced on Wednesday that they expect sales of their cocoa products will decline by a percentage between mid-single figures in the coming financial year due to high cocoa prices. Market attention is also focused on the weather conditions in West Africa where crops are being harvested. In a report published on Wednesday, LSEG Research and Insights stated that "Wet weather could delay cocoa harvesting in southern Ghana and the western Ivory Coast and dry weather might favor Nigeria and Cameroon’s key crop areas." London cocoa fell 1.1% to 4,797 pounds per ton, while New York cocoa dropped 0.45% to $6570. The price of arabica coffee rose 1.6% to $4.1190 per lb, while the price of Robusta coffee increased 0.3%. Reporting by Nigel Hunt Editing Shailesh Kumar and David Goodman
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Report: Bulgaria drafts a law to facilitate the sale of a Russian-owned oil refinery sanctioned by the US
Local media reported that the ruling party of Bulgaria plans to introduce legislation to allow a special manager to supervise the sale, if one is appointed, of the Burgas Oil Refinery owned by the Russian oil company Lukoil sanctioned by the United States. Mediapool in Bulgaria reported the draft document. It would allow a special manager the right to sell an asset. The legal owner of the refinery would not have the right to vote or appeal. Last month, the U.S., Britain, and France imposed sanctions against Russia's biggest oil companies Lukoil, and Rosneft over Moscow's conflict in Ukraine. This has complicated their operations. The Bulgarian government has confirmed that several subsidiaries of Lukoil, including the Burgas refinery and the Burgas group, will be subject to the latest U.S. sanction. The government said it was in contact with U.S. institutions to ensure the 190,000-barrel-per-day refinery can continue operating. Boyko Borissov - former Bulgarian prime minister and leader the GERB Party - that heads Bulgaria's government coalition - announced on Wednesday evening that a law introducing a special manager would be introduced. Borissov was quoted by BNT as saying: "There's a lot to this. That's why we will today submit a law draft on the special governor." Sources say that Lukoil struggles to maintain operations at its vast foreign businesses, as Western sanctions disrupt oil loads in Iraq, pumping stations in Finland, and trading in Switzerland. The U.S. Treasury has issued a license allowing companies to end any Lukoil transactions until 21 November. (Reporting from Robert Harvey and Georgi slavov. Angeliki Koutantou is the author. Mark Potter (editing)
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Gold prices rise on risk-aversion despite US payrolls data.
Gold prices rose over 1% on Wednesday, lifted by investors avoiding risky assets despite stronger-than-expected private payrolls data in the U.S. By 8:58 am, spot gold had risen 1.1% to $3,976.15 an ounce. ET (1358 GMT). U.S. Gold Futures for December Delivery rose 0.7% to $ 3,986.40 an ounce. "Gold and silver are modestly higher despite a stronger-than-expected ADP private payrolls report, which is the best broad jobs indicator given the shutdown. This should comfort bulls who were shocked that metals dropped along with risky investments yesterday," said Tai Wong an independent metals dealer. The ADP Employment Report showed that private U.S. employment increased by 42,00 jobs in the last month. This was above an estimate of 28,000 new jobs. A strong job market can reduce the likelihood of rate reductions and even increase rates for longer. On Wednesday, stocks fell from record highs amid fears that equity markets have become overstretched. Jim Wyckoff is a senior analyst with Kitco Metals. He said that "some safe-haven demands have surfaced in mid-week, as global stock markets remain a little shaky due to the idea U.S. stock are overvalued, and there's an AI bubble." The U.S. Federal Reserve also cut interest rates in the last week. Chair Jerome Powell indicated that it may be the final rate reduction for this year. The traders now expect a 70% probability of a rate cut in December. This is down from 90% last week. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. The U.S. Supreme Court will hear a hearing on the legality President Donald Trump's Tariffs later that day, after a lower-court ruled that the administration overstepped its authority in imposing levies based on an emergency law. The price of palladium rose 2.2%, while platinum gained 1%, to $1,550.60. (Reporting from Noel John in Bengaluru and Pablo Sinha; editing by Sahal Muhammad)
Asian stocks slide as rate concerns damage danger cravings
Asian stocks fell on Friday as strong U.S. financial data reinforced the possibility of interest rates staying higher for longer and the Federal Reserve taking its time in cutting rates, keeping financiers far from risky assets.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% and was on course for a 1.5% weekly decline, snapping its four-week winning streak. Japan's Nikkei fell 1%.
The risk-averse mood is set to continue in Europe, with the Eurostoxx 50 futures down 0.44% and FTSE futures 0.75% lower.
Information on Thursday showed U.S. unemployed claims dropped while S&P Global's Flash PMI survey showed organization activity expanded faster than financial experts forecast in May.
The robust economic data along with hawkish minutes from the Fed's last conference previously in the week has actually led traders to dial back their bets on rate cuts this year.
Today's data declares the Fed just does not have the capacity to provide policy lodging, said Prashant Newnaha, a senior Asia-Pacific rates strategist at TD Securities.
Markets are now pricing in just 35 basis points of easing in 2024, versus expectations of 150 bps of cuts at the start of the year, with a rate cut totally priced-in only in December.
Atlanta Fed President Raphael Bostic said the U.S. central bank may need to wait longer to cut interest rates because even with April's slightly cooler inflation reading there is continued upward pressure on costs.
Investors and traders who have become hopeful of a rate cut have also become hypersensitive to each key financial data point, which has actually caused rate cut expectations to become extremely unpredictable, said Vasu Menon, handling director of financial investment strategy at OCBC.
The waiting game is most likely to continue for a bit longer as markets flip back and forth in between US growth and inflation.
China stocks fell, with the blue chip stocks 0.43%. lower as China's military began its 2nd day of war games. around Taiwan on Friday. Hong Kong's Hang Seng Index was. 1.27% lower.
The altering expectations around U.S. rates has lifted. yields, with benchmark U.S. 10-year yield touching a. more than one-week peak of 4.498% on Thursday. It was last at. 4.466% in Asian hours on Friday.
The dollar has actually also benefited, with the dollar index,. which measures the U.S. currency versus a basket of six major. peers, up almost 0.6% on the week to 105.09, on course for its. biggest one-week increase because mid-April.
The dollar's climb has kept the pressure on the yen. The. Japanese currency was last at 157.04 per dollar, not. far from the more than 3 week low of 157.19 discussed. Thursday.
Japan's core inflation slowed for a 2nd straight month in. April due to milder food inflation while staying comfortably. above the central bank's 2% target, federal government data showed on. Friday.
Bank of Japan Governor Kazuo Ueda said on Thursday the. economy was on track for a moderate recovery, suggesting a depression. in first-quarter gross domestic product alone would not keep the. central bank from raising rates of interest in coming months.
Sterling was silenced on Friday at $1.2690, having. touched a 2 month high of $1.2761 on Wednesday as traders. consider rates outlook in the wake of information this week showing. inflation did not slow as much as expected in April.
The start of the election campaigns of British Prime. Minister Rishi Sunak and his Labour Celebration rival Keir Starmer,. drew eyes on Thursday though experts said the survey was unlikely. to have a major effect on markets.
Orla Garvey, senior portfolio supervisor for fixed income at. Federated Hermes, anticipates the Bank of England to start its. relieving cycle later this year.
The increased uncertainty around the election and budget. trajectory under a possible Labour government most likely puts. steepening pressure on the curve.
In commodities, oil prices were constant, with Brent crude. at $81.38 a barrel. U.S. West Texas Intermediate crude. ( WTI) futures were at $76.86.
Gold prices rose 0.24% to $2334.16 per ounce however are. set for a 3.3% decrease for the week, their most significant weekly drop. because late September.
(source: Reuters)