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The 300 kg gem found in the presidential palace of Madagascar was shown by the military ruler
Madagascar's interim President, who took power on the island nation in the Indian Ocean last month, unveiled a gem weighing 300 kg (661 pounds) that he claimed was found in the Presidential Palace. The Ambohitsorohitra State Palace, in Antananarivo's capital, Antananarivo, showed the dark boulder streaked with green crystal on Tuesday night. Expert analysis is still needed to determine the size and grade of the emerald that's embedded in the stone. Colonel Michael Randrianirina said, "This is an asset for the nation," as he stood next to the find. He promised "complete transparency" and said that "it might be sold". He did not give any details about how, when, and where the stone had been found. All he said was "we discovered this incredible treasure upon arrival" and that "we don't know why it was transported here". Carl Andriamparany, Mines Minister of Madagascar, called it a collector’s dream. He said that an emerald in its natural matrix was rare. Officials have not found a stone with a similar matrix documented anywhere in Madagascar. The government announced that the proceeds of a sale will go to the state treasury. (Reporting and writing by Lovasoa Rabary; Editing by Bate Felis and Alison Williams).
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Bangladesh court stops arbitration with India’s Adani Power for dues
The Bangladesh High Court halted arbitral proceedings on Wednesday between India's Adani Power and Bangladesh's power board over disputes regarding power supply payments. The Bangladesh Power Development Board and the company led by Indian billionaire Gautam Adian have been in dispute over unpaid electricity bills as part of an agreement that both parties signed in 2017. Adani and BPDB decided early this month to use an international arbitration process in order to settle disputes regarding Bangladesh's electricity supply payments. The court announced on Wednesday that arbitration would be suspended until a report is received from a committee formed by the high court to investigate fairness and any possible irregularities of the agreement between Bangladesh's government and Adani Group. Last year, the Bangladesh High Court ordered that a group of experts examine the contract between Adani and Bangladesh. Adani Power provides electricity from its 1,600 megawatt coal-fired Godda power station in eastern India. This plant meets almost a tenth the power needs of Bangladesh. Abdul Qayyum told reporters that if Adani begins arbitration proceedings in Singapore before the report is released, the investigation would be of no value. In December, the interim government of Bangladesh accused Adani for breaching the power-purchase agreement by refusing tax benefits to the Godda Plant that India had provided. Adani received a tariff from Bangladesh of 14,87 takas ($0.1220), per unit, during the fiscal period ending June 30, 2024. This was higher than the average 9.57 takas for power supplied by Indian companies. A spokesperson for the Adani Group said that the company had yet to review the court order. However, according to the agreement, any dispute between the parties must be resolved by the Singapore International Arbitration Centre which is outside the jurisdiction of Bangladeshi courts. BPDB didn't immediately respond to a comment request. Reporting by RumaPaul and SethuramanNR; Editing Maju Samuel
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Israeli airstrikes kill ten Palestinians in Gaza - a shivering ceasefire, say medics
Health authorities reported that Israeli airstrikes in Gaza killed 10 Palestinians on Wednesday, in an area under Hamas' control. The attacks occurred in a region of the Gaza Strip where a fragile ceasefire was in effect since October. Two people were reported dead in Shejaia, a suburb to the east of Gaza City. Four more died in Zeitoun, a nearby suburb. Four Palestinians were killed in a third airstrike in Mawasi, west of Khan Younis. Israel's military claimed that its forces had struck Hamas militants in Gaza who had fired at its troops, violating the ceasefire of nearly six weeks. No Israeli forces were hurt. The fragility of the truce has been demonstrated by repeated shooting incidents. Israel and Hamas are trading blame over what they both claim is a violation of the U.S. broker truce. This is the first step in President Donald Trump's plan to create a postwar Gaza. According to witnesses, medics and Palestinian media, all three attacks went beyond the imaginary "yellow lines" that were agreed upon between areas under Israeli control and Palestinian control. The Zeitoun attacks targeted a building owned by a muslim religious authority and the Khan Younis attacks targeted a U.N. run club. Both of these clubs housed displaced families. The ceasefire on October 10, which ended the two-year Gaza War, has helped to ease the conflict and allowed hundreds of thousands to return to Gaza. Israel has withdrawn troops from city positions and increased aid flows. Violence has not stopped completely. Palestinian health officials say Israeli forces killed 290 in Gaza strikes since the truce. Nearly half of those deaths occurred in one day, last week, when Israel retaliated against an attack on their troops. Israel claims that it has killed three soldiers since the ceasefire started and targeted scores of militants. (Reporting and editing by Nidal Al-Mughrabi, Howard Goller)
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Gold prices rise on demand for safe-haven assets ahead of US data
The gold price rose on Wednesday as investors sought out the safe haven asset in anticipation of the Federal Reserve meeting minutes to be released later that day. This was also due to delayed U.S. Employment data on Thursday. At 11:25 am, spot gold rose 0.3% to $4,081.15 an ounce. ET (1625 GMT) after climbing more than 1% earlier in session. U.S. Gold Futures for December Delivery gained 0.4%, to $4.081.50 an ounce. There's a safe-haven buy going on right now .... Bob Haberkorn, RJO Futures' market strategist, said that the (job) figures have been slightly softer and there is jitter in the equity markets. The global stock market stabilized Wednesday after another sell-off driven by fears over AI valuations. However, the mood is cautious as we await what could be a make-or break earnings report from chip giant Nvidia this week and U.S. job data. The Federal Reserve will release its minutes from the October meeting at 2 pm ET today. Today, policymakers will be able to clarify their stance on a possible rate cut. At the meeting, the central bank cut interest rates by 25 basis point. However, Chair Jerome Powell warned against further rate cuts in this year. The CME FedWatch tool shows that traders now expect a 49% probability of a rate reduction, as opposed to the 46% they saw earlier in the session. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. The release of the September job report, which was delayed because of the U.S. shutdown of government, is also expected on Thursday. This will provide an early indication of the economic health. The September employment report is expected to show that 50,000 new jobs were created during the month, according to economists polled. Data showed that in mid-October, the number of Americans who received unemployment benefits reached a record high. Other than that, silver spot rose by 1.1%, to $51.26 an ounce. Platinum increased by 0.9%, to $1.549.10 and palladium dropped 0.8%, to $1.389.45. (Reporting and editing by Alexandra Hudson in Bengaluru)
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Bangladesh court stops arbitration with India’s Adani Power for dues
The Bangladesh High Court halted arbitral proceedings on Wednesday between India's Adani Power and Bangladesh's power board over disputes regarding power supply payments. The Bangladesh Power Development Board and the company led by Indian billionaire Gautam Adian have been in dispute over unpaid electricity bills as part of an agreement that both parties signed in 2017. Adani and BPDB decided early this month to use an international arbitration process in order to settle disputes regarding Bangladesh's electricity supply payments. The court announced on Wednesday that arbitration would be suspended until a report is received from a committee formed by the high court to investigate fairness and any possible irregularities of the agreement between Bangladesh's government and Adani Group. Last year, the Bangladesh High Court ordered that a group of experts examine the contract between Adani and Bangladesh. Adani Power provides electricity from its 1,600 megawatt coal-fired Godda power station in eastern India. This plant meets almost a tenth the power needs of Bangladesh. Abdul Qayyum told reporters that if Adani begins arbitration proceedings in Singapore before the report is released, the investigation would be of no value. In December, the interim government of Bangladesh accused Adani for breaching the power-purchase agreement by refusing tax benefits to the Godda Plant that India had provided. Adani received a tariff from Bangladesh of 14,87 takas ($0.1220), per unit, during the fiscal period ending June 30, 2024. This was higher than the average 9.57 takas for power supplied by Indian companies. Adani Power and BPDB didn't immediately respond to a request for comment. (Reporting and editing by Maju Sam; Sethuraman N R and Ruma Paul)
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Brazil's Lula presses COP30 negotiators to reach an early climate agreement
Brazil's President was scheduled to meet with key negotiators on Wednesday at the COP30 Summit as part of a push to reach a deal before schedule on some the most controversial issues in the global talks on climate change, including fossil fuels. Nearly 200 countries have gathered in the Amazonian city of Belem for a two-week U.N. Summit to increase multilateral action on climate change. The United States was absent, but the United States is the largest emitter of greenhouse gases. Brazil, the host country, hopes to break the trend of recent climate summits that have run past their deadlines by attempting to approve a package on Wednesday and to address the remaining issues on Friday. FRESH DRAFT ESTIMATED ON WEDNESDAY By late morning, the COP30 Presidency had not yet announced a new draft of the original deal. The first version published on Tuesday presented a variety of options that divided opinion. According to Brazilian officials the return of President Luiz inacio Lula da Silveira to the conference gave the talks a new political boost. He was to meet with key negotiators and U.N. secretary-general Antonio Guterres. Brazil and 80 other nations that support it want to come to an agreement to help spur action in 2023 on the agreement made at the COP28 for a transition away from fossil-fuels. But the idea of creating an action plan to guide this transition has been rejected so far by others, Andre Correa do Lago, Brazil's COP30 president, said on Tuesday. VANUATU: 'WE HAVE BLOCKERS' Vanuatu, a Pacific island nation, Vanuatu’s climate minister Ralph Regenvanu said Saudi Arabia was among those who were opposed. Saudi Arabia didn't immediately respond to requests for comments. Regenvanu stated, "I believe it will be very difficult... because we have blockers." The package also includes a number of other contentious issues, including how wealthy countries will finance poorer countries' switch to clean energy and what needs to be done to close the gap between emissions reductions promised and those required to stop temperature rises. The poorer countries, who are already suffering from the effects of global warming, rally for a strong result. We want ambition in finance. "We want ambition on adaption. "We want to see ambitious plans for the transition," Jiwoh Abdulai said, Sierra Leone’s climate minister. "We want to make sure that we are living on a sustainable path, not only for our generation but also for future generations." Five sources said that plans to launch a U.N. supported global market to trade carbon offset credits have hit a snag due to disagreements between governments over funding. (Additional reporting by William James, Editing by Richard Valdmanis, Alison Williams.)
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Gold gains 1% as demand for safe-havens increases ahead of US data
Gold prices rose over 1% Wednesday as investors sought out the safe haven asset in anticipation of the Federal Reserve meeting minutes to be released later that day. Also, the delayed U.S. jobs data for Thursday was a factor. At 9:36 am, spot gold rose 1.2% to $4,116.26 an ounce. ET (1436 GMT). U.S. Gold Futures for December Delivery gained 1.3% to $4117.10 an ounce. There's a safe haven buy-in going on right now .... Bob Haberkorn, RJO Futures' market strategist, said that the (job) figures have been slightly softer and there is a jitter in the equity markets. The global shares stabilised on Wednesday after another selloff sparked by fears over AI valuations. However, the mood was cautious as investors awaited what could be a make-or break earnings report from chip giant Nvidia, and U.S. job data later this week. Data showed that on Tuesday, the number of Americans who received unemployment benefits reached a two-month-high in mid-October. The Federal Reserve will release its minutes of the October meeting at 2 pm. Today, policymakers will be able to clarify their stance on a possible rate cut. At the meeting, the central bank cut interest rates by 25 basis point. However, Chair Jerome Powell warned against further rate cuts in this year. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. The release of the September job report, which was delayed because of the U.S. shutdown of government, is also expected on Thursday. This will provide a preliminary gauge of the economy's health. The September employment report is expected to show that 50,000 new jobs were created during the month, according to economists polled. The CME FedWatch tool shows that traders now expect a 51% probability of a rate reduction, up from 46% in the earlier session. FEDWATCH Other than that, silver spot rose 2.3%, to $51.87 an ounce. Platinum increased 1.3%, to $1.544.80. Palladium dropped 0.5%, to $1.396.50. (Reporting and editing by Alexandra Hudson in Bengaluru)
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Indian state regulator delays Adani's power deal over cost issues
A filing on Wednesday revealed that the power regulator in Uttar Pradesh, northern India, has deferred approval of an Adani Group coal power project worth $2 billion due to a lack of clarity about costs. This was six months after its announcement. Adani Power won in May a contract for the supply of 1,500 megawatts from a coal-fired plant in Uttar Pradesh, at a cost of 5.38 rupees per unit ($0.0638). Lack of clarity on costs is due to a July decision by the Indian Government to relax rules for certain coal plants that install equipment which would remove sulfur dioxide while burning coal. Coal plant operators are expected to save billions of rupees through the easing of regulations. In an order, the state power regulator stated that Uttar Pradesh Power Corporation failed to provide their own analysis of cost savings or savings resulting from the non-installation of the equipment. The commission ordered the state utility to add Adani Power as a party in the case, and to submit detailed cost assessments to the commission within two weeks. The case will now be heard on December 18. In its previous hearing, held in September, the regulator stated that the utility had to have notified the commission of any changes in fixed charges and operating costs resulting from the fact that the equipment was no longer required. The utility also claimed that it should have evaluated the impact of the revised rates for goods and services taxes on coal as part of the power supply contract. Indian state electricity distribution companies are signing long-term agreements with coal-fired generators in order to meet an expected surge in evening demand. This is despite efforts by the country to increase its clean energy capacity. (Reporting and editing by Shreya Biwas; Sethuraman N.R.)
Stocks fall, US Treasury yields increase; US inflation data mostly inline
On Friday, major stock indexes dipped while U.S. Treasury rates rose. U.S. inflation figures were largely in line economists' expectations and kept expectations of an interest rate cut for September intact.
The U.S. Dollar Index also pared some gains after the report. The S&P 500, however, was down by 0.7% at the end of the day. Technology shares were the main culprits. Dell Technologies shares were down by more than 9% after its guidance and results.
U.S. Commerce Department announced on Friday that its Personal Consumption Spending Price Index (PCE), which measures the price of consumer goods, rose by 0.2% in July. This compares to a 0.3% rise in June. The increase is in line with estimates from economists surveyed.
PCE inflation was 2.6% higher in July than it had been in June. After removing volatile components such as food and energy, the core PCE Price Index rose 0.3% in July. This followed a 0.3% increase in core inflation in June.
You have to enjoy it when everything comes together. Art Hogan of B. Riley Wealth, Boston's chief markets strategist, stated via email that today's figures on personal consumption, spending, income and spending were in the middle.
This leaves the Fed's options wide open to reduce rates in September, and possibly again in October and December.
Fed funds futures traders now price in 89% of the odds that a reduction will occur next month. This is up from 84% prior to the data.
After Fed Chairman Jerome Powell's unexpectedly dovish remarks last Friday, traders increased their bets that there would be more cuts.
The Dow Jones Industrial Average dropped 205.66, or 0.45% to 45,431.24, while the S&P 500 declined 44.52, or 0.68% to 6,457.34, and the Nasdaq Composite was down 232.19, or 1.07, points to 21,472.97.
The MSCI index of global stocks fell by 5.43 points or 0.57% to 950.91.
The STOXX 600 Index fell by 0.53%.
Shares in China had their best month for almost a full year, with gains of more than 10%, on the hope that the economy, and especially its tech sector, will improve.
Last seen at $1.166, the euro fell 0.19%. The dollar gained 0.2% against the Japanese yen to reach 147.22. The dollar index (which measures the greenback in relation to a basket of other currencies) was slightly higher at 98.06.
The U.S. Treasury yields increased on Monday, but the interest rate-sensitive two-year yields are on course for their biggest monthly drop in the past year. Major U.S. Financial Markets were closed on Monday for Labor Day.
The yield on 2-year notes was up 0.2 basis points for the day, closing at 3.637%. This is the biggest fall in 32 basis points since August last year.
The yield on the benchmark 10-year U.S. notes increased 2.3 basis points, to 4.23%.
Germany's 30-year bond yield has increased 12 basis points in the past month. It is now on course to make its largest monthly jump since March when an historic shift towards a looser fiscal policies sent bond yields soaring. Bond yields are inversely related to prices.
Fed Governor Christopher Waller said on Thursday that he wants to begin cutting interest rates in the next month, and "fully anticipates" further rate cuts. This will bring the Fed’s policy rate to a more neutral setting.
The oil prices fell, but were still set to rise for the week. U.S. crude dropped 0.33%, to $64.39 per barrel. Brent was down to $68.24 a barrel.
(source: Reuters)