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Malaysian automaker Proton opens first EV plant
Malaysian automaker Proton opened its first assembly plant for electric vehicles on Thursday as it looks to develop its EV sector. The plant, which is located in the Automotive High-Tech Valley of western Perak State - Malaysia's primary auto-making hub – will initially have a capacity to produce 20,000 vehicles annually. Proton stated in a press release that this could be increased to 45,000 cars per year. Proton announced that the e.MAS 7 will be its first EV and then the e.MAS 5 as the entry-level model. Proton's majority owner is the Malaysian conglomerate DRB HICOM, while China's Zhejiang geely Holding group owns 49.9% of Proton. Anwar Ibrahim, Malaysia's Prime Minister, said that the new plant reflected the close cooperation between Malaysia and China. He also called on Geely, to increase its investment in the auto hub. He said: "We want Geely, to take this opportunity not only to build a factory that produces cars, but also to create a center of education and training excellence." Malaysian authorities are aiming to become a regional hub of electric vehicles. They want to sell 20% of new cars as hybrids or EVs by 2030.
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The UK court has ruled that Potanin’s ex-wife, who is the Russian oligarch Potanin, can file a massive divorce claim.
The ex-wife of Russian oligarch Vladimir Potanin can continue to pursue a multibillion-dollar share of his Nornickel stake, the Court of Appeal in London ruled Thursday. This could be one of most expensive divorce cases brought. Potanin is the CEO of Norilsk Nickel, which is the world's biggest palladium producer. It also produces a lot of refined nickel. His ex-wife Natalia Potanina has filed a massive divorce suit against him. Potanina is seeking financial relief after their divorce, which was finalized in 2014. She wants 50% of the value her ex-husband’s ultimate beneficial interests in Nornickel shares. Potanina also wants 50% of all dividends paid by Potanin to Potanin between 2014 and now, as well as a luxury Russian property on which they spent $150 million. Her lawyers claim she only received $41.5 million after the divorce. This is less than 1% the total assets of the couple. Potanin, however, claimed that his ex-wife had received $84 million. He also argued that the couple did not have any connection with Britain. Potanina initially failed to get her case heard by the London High Court in 2019. A judge said that if she was permitted to continue, "there is no limit to divorce tourist". On Thursday, the Court of Appeal reversed that decision. "The wife's ties to Russia were severed in a very large way, as evidenced by the court." The court ruling stated that her connection to Russia was becoming increasingly tenuous. The discrepancy in her awarding of marital assets compared to the husband's share was significant. It was also significant that she recovered less in Russia than she would have had she been heard by this court. Reporting by Michael Holden, Sam Tobin and William James.
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Bond markets remain calm as shares recover from China's selloff
Stocks rose on Thursday, as the Federal Reserve's dovish remarks and an auction of super-long-term debt held in Japan went smoothly. This helped to calm some recent market anxiety about government bonds. China's bourses fell overnight, reportedly because Beijing was trying to cool down the raging rally on its equity markets. STOXX600 in the region ticked up by 0.3% after trading settled. The angst over rising government borrowing costs, especially for long-term loans, has subsided. The oil prices continued to be weak after a report saying that OPEC+ officials would increase output targets during their weekend meeting. Meanwhile, the dollar was on a downward trend ahead of Friday’s important jobs report. In recent days, several key Federal Reserve officials have raised expectations of a Fed rate cut. The traders are pricing in an almost 100% chance of a Fed rate cut at the next central bank meeting on September 17. Derek Halpenny is the head of research for MUFG’s global markets division. He said that the Chinese equity markets dip had affected the Aussie and Kiwi dollar in the FX market, but other than that it was "consolidate" and "wait" for Friday's employment numbers. The European bond buyers pushed the German 30-year yield down by just over one basis point, to 3.3%. France's bond yield was roughly the same, at 4.45%. It had hit its highest level since June 2009, 4.523%, on Tuesday. FALLING STONE After Bloomberg reported that financial regulators are preparing cooling measures, MSCI's Asia-Pacific broadest index, excluding Japan shares ended the night 0.2% lower. Beijing bluechips dropped as much as 2,6%. The tech-heavy STAR 50, which soared almost 30% last month fell more than 6% on its worst day since the beginning of April. Wall Street futures pointed to a smooth restart. The next payrolls will be on Friday. But traders can listen to the hearing for Stephen Miran's nomination to replace Adriana Kugler, who resigned from the Fed board. Jim Reid, Global Head of Macro Research at Deutsche Bank, commented that it would be interesting to see senators question Miran about his views on Fed Independence, especially since Trump had fired another Fed official Lisa Cook and has repeatedly criticized Fed Chairman Jerome Powell. Miran stated that he would "preserve this independence" in his testimony, which was posted on the Senate Banking Committee website Wednesday before Thursday's hearing. The auction of 30-year Japanese Bonds in Tokyo went smoothly overnight, despite the attention that the independence issue has brought to the already high government debt levels. The Nikkei ended the day 1.5% higher, after recovering from its biggest one-day drop since April. Tony Sycamore said, "We had one or two weak days, but dip-buyers stepped in," said Tony Sycamore. India's benchmark Sensex grew 1% when markets reopened after the government slashed taxes on several items to boost consumption and counteract U.S. Tariffs. The Federal Reserve's "Beige Book", released on Wednesday, painted a mixed image of the U.S. economy. This appeared to confirm monetary policymakers concerns. Analysts from ING described it as "bleak", and that it was "strewn with" tariff warnings about prices. In European trading, the yield on 10-year Treasury bills fell to 4.2%. The 2-year yield, which is more sensitive to rates, was just over 3.6%. The dollar was up by 0.1% against the Japanese yen, at 148.25. It remained within the range of trading it has been in since August began. The dollar was slightly higher at $1.1650 against the euro. Brent crude fell 0.6% to $67.17 a barrel, and gold retreated 0.8% from its record high of $3578.5 per ounce reached on Wednesday. (Gregor Stuart Hunter, Singapore, contributed additional reporting; Andrew Heavens edited the article)
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Another French nuclear reactor is shuttered by a jellyfish swarm
EDF reported on Thursday that a jellyfish swarm had reduced production by 2.4 gigawatts after it entered the filter of the pumping stations at the Paluel Nuclear Plant in France. This is the second instance where jellyfish has affected production within a month. EDF reported that the electricity production at the 5.2 GW Paluel Nuclear Plant in northern France had been nearly halved late Wednesday, as the 4th reactor was shut off and the power of the 3rd reactor was reduced to preventive levels. Paluel is connected to the English Channel and is cooled by its waters. Both native and invasive jellies have experienced larger breeding windows because of warmer temperatures. The reactor number 1 is at full capacity, while the reactor number 2 is shut down for maintenance. Gravelines Nuclear Plant was shut down in mid-August, after a "massive" and "unpredictable" jellyfish swarm entered its cooling system. It is not the only time jellyfish have caused problems at nuclear power plants. In 2011, Scotland's Torness nuclear plant faced similar problems, while Gravelines was also disrupted. Scientists warn of the possibility that these events will become more frequent due to global warming, arrival of invasive species in marine habitats, loss of habitat for predators and overfishing.
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Gold drops from record high; US jobs data is the focus.
Gold prices fell on Thursday as investors locked up profits and shifted their attention to the key U.S. employment data, which could provide further insight into Federal Reserve policy. As of 0838 GMT, spot gold dropped 0.4% to $3542.97 an ounce. U.S. Gold Futures for December Delivery fell 0.9% to $3.601.40. On Wednesday, spot gold reached a new record of $3.578.50 amid increasing bets on a U.S. Federal Reserve interest rate cut. There are also lingering economic and geopolitical uncertainties. StoneX analyst Rhona o'Connell stated that the market had been overbought. If the claims for joblessness are out of line we may see a change in prices - down, if low, or up, if high. Focus is on the ADP report, due later today, and on Friday's non-farm payrolls in the United States. Data showed that job openings in July were lower than expected at 7.181 millions. Data showed that job openings fell more than expected to 7.181 million in July. According to CME Group's FedWatch, the market now prices in a 98% probability of a rate cut of 25 basis points this month. Gold that does not yield is usually more profitable in low interest rate environments and during times of uncertainty. Donald Trump, the U.S. president, said that if Washington loses its Supreme Court case on tariffs, it may have to "unwind' trade agreements it has made with other countries, such as Japan, South Korea, and the European Union. Goldman Sachs stated that if private investors increased their gold purchases, the price of gold could rise well above its baseline $4,000 by mid-2026. Silver spot fell 0.7%, to $40.92 an ounce after reaching its highest level since September 2011. Palladium fell 1% and platinum 1.4%, to $1136.12. (Reporting by Ishaan Arora in Bengaluru; Editing by Sumana Nandy)
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EUROPE GAS - Prices edge lower due to strong supply and rising gas stocks
The wholesale gas prices in the Netherlands and Britain fell slightly on Thursday morning, as a result of a strong supply and increasing gas stocks. LSEG data shows that the benchmark Dutch front-month contract was 31.94 euros per Megawatt Hour (MWh) at the TTF Hub, or $10.91/mmBtu at 0803 GMT. The Dutch day-ahead contracts was down by 0.23 euros at 31 Euro/MWh. The British gas day-ahead price fell 0.70 pence to 77.10 pence a therm. The market is calm as Europe managed to fill its storages during the summer. Despite maintenance work in Norway, supply concerns remain low. Gas Infrastructure Europe released the latest figures showing that Europe's gas storage tanks are 78.3% filled. LSEG data shows that the total Norwegian export nominatons increased by 7 million cubic meters/day to 254 mcm/d. LSEG data also showed that liquefied natural gas supplies increased, with the sendout to Northwest Europe increasing by 135 gigawatt-hours a day. This amounts to 2,388 GWh/d. In a daily note, LSEG analyst Yuriy Onieshkiv stated that the market was expected to remain rangebound. There were no new factors to support or pressurize prices. The benchmark contract on the European carbon markets was up by 0.22 euros at 75.17 euro per metric ton. (Reporting and editing by Joe Bavier; Susanna Twidale)
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Tea exports from India and the global supply are threatened by a dry climate
Kamini Kurmi, a picker at a tea estate in Assam (India's northeastern State), wears an umbrella over her head so that her hands are free to pluck the delicate leaves off the bushes. Kurmi is one of many women who are employed to harvest conventional crops using their dextrous hands, rather than machines. The extreme weather conditions are shrinking harvests in India's tea plantations. This is threatening the future of a beverage industry that has been renowned for refreshing beverages like Assam and Darjeeling. It also threatens a global market valued at over $10 billion per year. Scientist Rupanjali Baruah of the Tea Research Association said that shifts in rainfall and temperature patterns are not longer anomalies. They are now the new norm. The changing patterns will reduce yields, and the rising Indian domestic demand is expected to decrease exports. India is the second largest producer of tea in the world. Indian exports could increase prices, even though other major producers like Kenya and Sri Lanka are stagnating. Last year, Indian exports accounted for 12% of the global trade. The tea prices in Indian auctions have only grown 4.8% per year over the past three decades. This is far below the 10% growth achieved by staples like wheat and rice. The 7.8% drop in output last year, to almost 1.3 billion kg (2.85 billion lb), mainly due to a steep fall in Assam boosted prices nearly by a fifth. Manju Kurmi has been working in tea gardens for over 40 years. She used to pick around 110 kg (243lb) of leaf per day. "But I'm only able to manage 60 kg (132 lb) now that the weather is hotter." Falling yields put pressure on an already struggling industry that is also facing heavy debt and shrinking margins. This makes it harder for companies to reinvest in plantations, replace ageing bushes and develop climate-resistant varieties. Second flush tea is prized by Assam for its aroma and flavour. It is usually more expensive than the first flush but is also particularly susceptible to heatwaves. Long dry spells, and intense, sudden rains, are disrupting the mild, humid conditions that are critical for the tea-growing areas of the state. Heat Strains the Cup This weather is not only conducive to pest breeding, but also forces estate owners to use the rarely used practice of irrigation plantations. Mritunjay, the owner of a 82-year old tea estate in Assam’s Tinsukia District, explained. The Tea Research Association reports that rainfall has decreased by more than 250 millimeters (10 inches) from 1921 to 2024. Minimum temperatures, however, have increased by 1.2 degrees Celsius (34.22 degrees Fahrenheit). This season, Assam experienced rains that were 38% lower than average, mainly due to the monsoon. This has helped to reduce the harvesting period, and thus the peak production season, by a few weeks, according to senior tea planter Prabhat Bezboruah. Bezboruah stated that "the tea prices have become volatile." While they may be correcting themselves this year, a lower production in the next year's expected to push them higher. Tea leaves become discoloured and blotched with brown spots, or even laced with tiny holes, when there are frequent, patchy rains. The punishing heat is forcing workers to cool down under industrial fans mounted on the wall. We must take breaks at least every 30 minutes, said Putli Lohar has been working in tea factories for over a decade. Once the leaves are dried, workers will crush and sift them in large barrel machines, before putting them in sacks, or hooking them onto pulleys for transport to a further processing facility. Women wearing disposable masks, aprons, and caps inspect the tea before it is packaged and final quality checked. Tea growers increased pesticide use and pruned trees earlier after last year's drought reduced production. Hemant Bhangur, the chairman of India's leading tea industry association, Indian Tea Association, explained that these measures add to costs which are already increasing at an 8%-9% rate per year due to higher wages and fertiliser prices. Planters claim that government incentives do not encourage replanting. This is crucial in Assam where older colonial tea bushes are less productive and more susceptible to weather changes as they age. India's tea sector has thrived for almost 200 years. However, its share in global trade may fall below 12% by 2024, as a growing population increases demand. The Indian Tea Association reports that domestic consumption has risen 23% in the last decade, to 1.2 billion kilograms (2.7 billion pounds), outpacing the production growth of 6.3%. India's imports of tea nearly doubled in 2024, reaching a record high of 45.3 million kg (90.8 million lb) in the same year. Executives of India's top merchants said that this adds costs for overseas buyers at a moment when competitors around the world, like Kenya, are facing similar issues. Unnamed official from a major exporter in Kolkata, an eastern city, said that global supplies might tighten as India is also experiencing a shortage. This could finally boost world prices.
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Marex, a European commodities broker, expands its petrochemical trading team
Marex, a European financial and commodities group, is expanding its global trading team for petrochemicals. It is betting on a rebound in an industry that has been hit by low margins. This was announced on Thursday by its new head of petrochemicals trading. Vasudev Balagopal joined Marex as a new employee in August. The company's goal is to increase its petrochemical trade portfolio up to 3,000,000 metric tons. Balagopal was previously the head of aromatics trading at Japan's Mitsubishi Corp. He said that a trader would join Marex's team of petrochemical traders in Tokyo in the month of December. The company will also add staff to Dubai, Japan, and Singapore before the end. Marex has offices in New York, Rotterdam and other cities. The company has expanded its petrochemicals portfolio to include products like aromatics, polyvinylchloride, chloralkali, and shipping liquids such as methanol. Overcapacity in China, the Middle East and other countries has caused a global downturn that is longer than expected. Tariffs, trade protectionism and other factors have exacerbated industry problems. "I expect the turbulence of trade caused by tariffs to lessen slightly, maybe within a year. Also, European demand must be revived for this industry to recover," Balagopal stated. After years of losses, Europe's petrochemical sector is in ruins.
Asia markets tumble as Fed rate cuts hype is tempered by hot PPI prints
Stocks in Asia recovered unevenly as higher than expected producer price inflation dampened the expectations of a rate cut at Federal Reserve's meeting in September, while U.S. Bonds and Equity Futures stabilized.
MSCI's broadest Asia-Pacific index outside Japan fell 0.3% following a report from the Bureau of Labor Statistics on Thursday, which showed that the Producer Price Index had increased by 0.9% on a monthly basis in July. This was well above the expectations of economists.
Mike Houlahan is the director of Electus Financial Ltd. in Auckland.
According to CME Group's FedWatch, the market currently prices in a 92.1% chance of a rate cut of 25 basis points at its September meeting. This compares with a 100% probability of a rate cut on Thursday. The probability of a 50-basis point jumbo cut has dropped to 0%, from 5.7% yesterday.
U.S. Stock Futures were flat early in Asian trading, after a volatile trading session on Wall Street ended with modest gains on Thursday. The yield of the 10-year Treasury Bond was down by 1 basis point to 4.2829%.
The yield on the two-year bond, which is sensitive for traders to expectations about Fed Fund rates, fell to 3.7304%, down from a U.S. closing of 3.739%. Nasdaq Futures continued to lose for a third day in a row, falling 0.1%.
After the PPI release, the dollar index, which tracks greenback's value against a basket other currencies of major trading partners, has retraced gains, trading lastly down by 0.1% to 98.143.
The Nikkei recovered 0.4% on Friday after ending a six-day streak of gains with its largest one-day decline since April 11. Japanese GDP data showed that the economy expanded by 1.0% annually in the quarter April-June, exceeding analyst expectations. The dollar fell 0.3% to 147.64 yen after breaking a six-day winning streak on Thursday.
Australian shares last rose 0.2% while stocks in Hong Kong fell 0.9% after losses on Thursday by U.S. exchange-traded fund tracking Chinese companies.
After the release of lower-than-expected Chinese data, the CSI 300 lost its early gains and traded flat at last.
Economic data
For July, including retail sales and production.
India and South Korea have closed their markets for the public holidays.
The cryptocurrency markets have stabilised following a record high for bitcoin on Thursday of $124480.82. However, the new record quickly fell after it missed its next major milestone. The digital currency gained 0.7% and recovered some ground. Ether also gained 1.7%.
"Bitcoin’s failure to overcome the $125,000 opposition signals another consolidation phase," Tony Sycamore said, a market researcher at IG Sydney.
Brent crude was unchanged at $66.94 a barrel on the commodities market ahead of an Alaskan meeting between U.S. president Donald Trump and Russian leader Vladimir Putin.
The gold price was slightly lower, as markets digested inflation-adjusted rates of interest. These typically move opposite to bullion prices. Spot gold traded up 0.1% to $3,339 an ounce.
Early European trades saw the pan-regional futures up 0.4%. German DAX Futures were also up 0.3%, at 24,489 and FTSE Futures were 0.5% higher.
(source: Reuters)