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Copper reaches 16-month high due to supply concerns and lower dollar
The copper price rose to its highest level in 16 months on Thursday, as fears of shortages caused by supply disruptions and the lower dollar surpassed weak demand forecasts for China's leading consumer. The benchmark copper price on the London Metal Exchange rose 1% to $10,479 per metric ton, up from $10,520.5. This is the highest level since May of last year, when industrial metal prices reached record highs over $11,100 per ton. The latest on supplies comes from Indonesia, where Freeport McMoRan’s Grasberg operations suspended operations on 8 September after a deadly mudslide. The suspension of operations at Grasberg comes after other major disruptions in this year, including Kamoa Kakula mine in the Democratic Republic of Congo (DRC) and El Teniente in Chile. The dollar is also under pressure due to the shutdown of the U.S. Government. Tom Price, Panmure Liberum's analyst, said that the dollar was already under stress due to tariffs and a slowing U.S. economic growth. The lower dollar makes metals priced in dollars cheaper for holders of currencies other than the U.S. dollar, which could increase demand for industrial metals. After partisan differences prevented Congress and White House from negotiating a funding agreement, the U.S. Government has closed down many of its operations. Private surveys this week showed that factory activity fell in many parts of the world in the last month. Signs of a slowdown of U.S. economic growth, and the expected impact of President Donald Trump’s tariffs were added to the pressure of weak Chinese demand. The focus was also on the zinc stocks registered at LME warehouses, which have fallen by 66% from mid-July to their lowest level since March 2023. . Concerns over the availability of zinc at the LME have fueled a surge in premiums for the cash contract in the three months ahead to three-year-highs around $80 per ton, compared to a $6 discount back in July . The price of three-month zinc rose by 1.1% to $3,020 per ton after hitting a high of $3,032 in the previous nine months. Other metals saw a 0.6% increase in aluminium to $2.704.5. Lead rose 0.4% at $2.018.5. Tin advanced by 0.8% to $35,300. Nickel increased 0.6% per ton to $15,280.
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Bloomberg News reports that Eric Trump has signed up with Citigroup as a client
Bloomberg News, citing sources with direct knowledge, reported that Eric Trump, son of U.S. President Donald Trump, had signed up to be a Citigroup client and set up a trust which holds some of his dad's money. Reports added that the value of the trust held by Citigroup with the U.S. president as its beneficiary is not clear. Donald Trump's second term in office saw him hand over the management of his assets to his children. This was a repeat of an arrangement made during his previous term. The report stated that Citi's relationship began after CEO Jane Fraser congratulated President Trump for his victory in the November election, and wealth management chief Andy Sieg conducted the discussions with Eric Trump, age 41. Report said that the bank had considered how to limit the access of information about the trust to key staff, such as Sieg, and Kent Lucken, Citigroup's banker who handles the relationship. Could not independently verify the article. Citigroup's spokesperson declined to respond to a question. Trump claimed in an August interview with CNBC that the two largest lenders in the United States, JPMorgan Chase & Bank of America, had refused to accept his deposits after his first term as president, but did not provide any evidence. Trump said to CNBC that he had "ended up going all over the place to small banks." Bloomberg reported that this year more banks expressed interest in establishing relationships. Some of them even privately contacted the Trump family.
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Czech billionaire Kretinsky sells Thyssenkrupp stake after JV plans fail
The Czech billionaire Daniel Kretinsky agreed to sell his 20 percent stake in Thyssenkrupp’s steel business and scrap plans for joint ventures, according to a statement released by both parties. This could pave the way for an agreement with Jindal Steel. The sale of the stake ends long-running discussions about what could have been a German and Czech steel and energy giant. Discussions that have made no measurable progress since Kretinsky purchased a fifth in Thyssenkrupp Europe (TKSE) late last year. Thyssenkrupp shares, which had earlier reached a high of six years, briefly fell on the news, before recovering and trading 1.6% higher by 1042 GMT. Thyssenkrupp can now move forward with its talks with India's Jindal Steel International. Jindal Steel International last month made an indicative offer for the entire TKSE business, a volatile one that its parent had been trying to sell for years. The statement stated that Kretinsky’s EP Group “respects Thyssenkrupp’s AG preference to focus on discussions with Jindal Steel International” and that the price paid by Kretinsky’s EP Group to Thyssenkrupp to acquire the TKSE shares would be reimbursed. Although both parties have not disclosed the purchase price of the property, those familiar with the matter estimate it to be around 140 million Euros ($164 million). This news comes at a time when uncertainty is growing about the future of steelmaking in Europe. The sector is battling with low-cost Chinese imports, rising energy costs, and a delayed decarbonisation based on hydrogen of one of the most pollution industries. The EP Group of Kretinsky and Thyssenkrupp aimed to form a joint venture with TKSE that would be 50/50. However, the talks have proved difficult as powerful unions accuse the Czech businessman for refusing engagement. $1 = 0.8511 Euros (Reporting and Editing by Matthias Williams, Louise Heavens and Matthias Williams)
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Venezuelan students turn plastic waste into classroom desks
In the northwestern part of Venezuela, a local foundation has turned piles of broken furniture and discarded plastic into desks. El Zulia Recicla in the capital of Zulia, Maracaibo has so far refurbished 160 desks using plastic waste collected from students. The foundation does not build new furniture but instead repairs metal frames that are damaged and replaces the missing parts with molded panels manufactured in its workshop. The research director of the foundation, Nicolino Bácho, said: "We show that desks with damaged wood and falling apart can be restored." Already, 20 desks were delivered to Ramon Reinoso Nunez school, where previously students sat on the ground or used backpacks for chairs. Maritza Jaimis, the school's director, said: "We have a lot of desk issues. Theft and wear take their toll over time." She said, "We had hoped that they would take more but are grateful for the 20 restored ones." The foundation, which is partly funded by France's embassy, has a goal to provide 200 desks in 10 schools located in areas that are vulnerable. This initiative is part of a larger effort to raise awareness about the environment and reduce plastic pollution in the region. Mariela Nava, Efraino Otero and Mariela Nava report.
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Rugby Australia and New Zealand compete for Rugby Championship medals in Perth final
Australia and New Zealand will meet again on Saturday at the Perth Stadium, after a brutal battle at Eden Park. Both teams are hoping to claim, even temporarily, the Rugby Championship Trophy. South Africa will not be able to celebrate their victory, as they must wait until after the match against Argentina, at Twickenham, in order to win back-to-back championships. The prospect of a showdown between the two teams in Perth should not dampen the excitement. Perth's much improved hosts will be looking to give prop James Slipper a fitting send-off in his final and 151st international. Scott Robertson’s All Blacks will, on the other hand, be desperate to maintain their traditional dominance against their trans-Tasman competitors. New Zealand has already secured the bilateral Bledisloe cup with a 33-24 victory at Eden Park, but it will still want to end the Rugby Championship on a positive note after a sometimes sobering campaign. The All Blacks' record defeat in Wellington against a revitalized South Africa and their first ever loss in Argentina to the Pumas, made them seem like a fading superpower half way through the World Cup cycle. New Zealand's egos would suffer another crushing blow if they were to lose the match against Australia, who is their usual punching bag. Robertson and his team would also be under increased pressure. Joe Schmidt has made the Wallabies happier despite their losing record of 2-3 in this tournament. The Tides Turning for 2027 World Cup Hosts Schmidt's blowout losses in his first season as coach are just a year old, but they seem like a bygone era. The fans have been packed to their seats for home matches in this season, but they are more likely to be disappointed by the results than hopeful. Andrea Piardi's capricious officiating and a late yellow-card could have prevented Australia from leaving Eden Park with the Bledisloe and a chance to reclaim it for the first 23 years. They left with a feeling of being aggrieved and the 10th consecutive loss to the All Blacks. This may be useful for settling the score in Perth. Schmidt told journalists on Thursday that if we were to win this week we would finish at the very least second. "That's incredible when compared to the last season or even season before. I do believe there is growth in the team. I cannot guarantee it will be linear, but I can guarantee the effort. The additions of Will Skelton from France and Rob Valetini on the bench, after he missed Eden Park due to a calf injury, will make Australia stronger. Schmidt gambled that Tane Edmed, who had a shaky debut at the Sydney loss to the Pumas in his number 10 jersey in the absence of flyhalf James O'Connor after he was benched for a full match at Eden Park due to some costly mistakes with the boot. Robertson also has thrown caution out the window, dropping Billy Proctor at centre in favor of Quinn Tupaea. Leicester Fainga’anuku will be playing on the wings for the first time since the World Cup 2023. New Zealand appears as vulnerable as ever, which could make the Wallabies as dangerous as ever. (Reporting from Ian Ransom, Melbourne; Editing done by Ken Ferris).
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Nepal celebrations hollow for families mourning protesters
The homes of Chaulagains, a family that has lost a son in Nepal's worst civil unrest, are suffused with grief. Ganesh Prsad Chaulagain (53), who lost his 18-year-old son Shreeyam in the political turmoil which ravaged the Himalayan country last month, said: "Dashain should be filled with joy, but this is the first year that I feel only sadness." The capital of Nepal, Kathmandu, was filled with music and the smell of festive feasts as he spoke in the echoing quiet of his family's home. The student, a high schooler, was shot in the face on 8 September near Parliament after he participated in a peaceful protest against corruption that spiralled into two days of violence. Nepal is slowly recovering from the violence that was sparked by so-called Gen Z protests, which were sparked by young people angry at perceived political indifference and lack of employment. 74 people died in these protests and they brought in a new interim administration. It has been reported that "high velocity firearms" were used to fire "live bullets" at least 33 out of the 58 demonstrators who died in the anti-graft demonstrations. The Chaulagains, like many others in the mountainous Nepal, lived off a meager monthly income. In their case, it was less than $200. They made sure Shreeyam got an education and hoped he would find a job abroad, maybe in Germany, in order to reduce their financial burden. Nepal's median age is 25 years. However, a lack in employment has caused nearly a third its youth to leave their homes in search of work that will ensure economic security. Nepal's instabile politics has not made matters any easier, with 14 government changes in less than 20 years. Sushila Karaki, 73, former chief justice of the Supreme Court was appointed interim prime minister after the protests to prepare for the elections scheduled for March 5. However experts warn that the task will be difficult. The Chaulagains and relatives of those killed in the protests are now demanding that the government provide them with regular economic assistance, not just an one-time payment. The father of Shreeyam, who died in a car accident, said that Dashain would never be the same. (Reporting and editing by Clarence Fernandez in KATHMANDU, Sahana Bajiracharya from KATHMANDU)
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S&P 500 and Nasdaq Futures Advance on New Rate-Cutting Optimism
Futures linked to the S&P 500 index and the Nasdaq Index advanced early on Thursday. A day earlier, weaker than expected private payroll data had boosted hopes for rate cuts. Traders were bracing for a session with little data due to the U.S. Government shutdown. Investors are still sensitive to any sign of policy easing. Rate-cutting optimism has been a major factor in the recent rally, which has pushed equities up to high valuations. Investors are now relying on alternative data sources to fill the data vacuum left by the shutdown. This includes Wednesday's ADP National Employment Report which was weaker than anticipated. Arnim Wooder, global macro-strategist at Easterly EAB, said that it would likely strengthen those in the Fed policymaking panel who think the labor situation warrants at least another cut. The ADP report could be the last labor market data for some time. Traders interpreted the lower reading as sufficient to nudge the Fed towards a 25 basis point rate cut at the next meeting. Kyle Rodda is a senior financial analyst at Capital.com. He said, "It appears that the U.S. economic system needs further policy support." At 06:41 am. At 06:41 a.m. ET, Dow E Minis were down 26 or 0.06%. S&P 500 E Minis were up 11.25 or 0.17%. Nasdaq E Minis were up 92 or 0.37%. On Wednesday, the benchmark S&P 500 index and blue-chip Dow ended at record highs. The shutdown, which began on Wednesday, has already affected the weekly report on jobless claims, an important indicator of the labor market's health. This report was due to be released on Thursday. In the past, shutdowns of government agencies have not had a significant impact on equity market. Investors are looking for signs of monetary ease, and the data vacuum is a risk. Investors will also be analyzing the comments of Dallas Fed President Lorie Lo Logan on Thursday. Tesla's stock rose 1.6% ahead of the release of its quarterly delivery report. Shares of Lithium Americas, listed on the NYSE, fell 4.6% following a downgrade by Canaccord Genuity. Equifax and TransUnion credit bureaus fell 12.2% each and 11.3% respectively after FICO launched its program to allow mortgage lenders access to scores without having them rely on bureaus. FICO was up by 10.7%. Advanced Micro Devices rose 2.9% following a report that Intel had begun early discussions to include the chipmaker as one of its foundry customers.
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Czech billionaire Kretinsky sells Thyssenkrupp stake after JV plans fail
The Czech billionaire Daniel Kretinsky agreed to sell his 20 percent stake in Thyssenkrupp’s steel business and scrap plans for joint venture, according to a statement released by both parties. This could pave the way for an agreement with Jindal Steel. The sale of the stake ends long-running discussions about what could have been a German and Czech steel and energy giant. Discussions that have made no measurable progress since Kretinsky purchased a fifth in Thyssenkrupp Europe (TKSE) late last year. Thyssenkrupp shares, which had earlier reached a high of six years, briefly fell on the news, before recovering and trading 1.6% higher by 1042 GMT. Thyssenkrupp can now move forward with its talks with India's Jindal Steel International. Jindal Steel International last month made an indicative offer for the entire TKSE business, a volatile one that its parent had been trying to sell for years. The statement stated that Kretinsky’s EP Group “respects Thyssenkrupp's AG preference to focus on discussions with Jindal Steel International” and that the purchase price paid by Kretinsky’s EP Group to Thyssenkrupp to acquire the TKSE shares would be reimbursed. People familiar with the situation estimate the price at approximately 140 million Euros ($164 million). This news comes at a time when uncertainty is growing about the future of steelmaking in Europe. The sector is battling with low-cost Chinese imports, rising energy costs, and a delayed decarbonisation based on hydrogen of one of the most pollution industries. The EP Group of Kretinsky and Thyssenkrupp aimed to form a joint venture with TKSE that would be 50/50. However, the talks have proved difficult as powerful unions accuse the Czech businessman for refusing engagement. $1 = 0.8511 Euros (Reporting and Editing by Matthias Williams, Louise Heavens, and Matthias Steitz)
Stocks continue to rise as markets assess the impact of US shutdown
Gold traded at near-record highs as investors digested potential ramifications from a U.S. shutdown. Meanwhile, a weak U.S. private labour market report strengthened bets that the Federal Reserve will cut rates.
The prolonged shutdown of the U.S. federal government could delay or disrupt the release of important official data, such as those on inflation and employment. This would cloud the picture of the health of the largest economy in the world and the direction of interest rates.
A Friday release of the monthly payroll report is unlikely. This brings into focus an ADP employment report from overnight that showed unexpected job losses in September. The traders are pricing in two quarter point Fed rate cuts before the end of this year.
Kevin Thozet of Carmignac Asset Management, who is a member of the investment committee, said, "I hope that they can sort this quickly." He was referring to the shutdown in the federal government. Inflation data were also due before the next Fed meeting.
He said, "It is like a man walking with a dog who has no sight."
He added that while U.S. stock prices have done well, the dollar has weakened due to uncertainty over the credibility of U.S. financial institutions in general.
SHUTDOWN ANGST HURTS DOLLAR AND BOOSTS GOLD
On Thursday, the MSCI global stock index rose by about 0.3%, after European stocks reached a new record high of about 0.7%.
Wall Street futures also rose between 0.2 to 0.4%.
The tech shares in Asia rose earlier, contributing to the rise in regional stock indexes. This was partly due to news that South Korean chip giants Samsung and SK Hynix had signed partnerships with OpenAI data centers.
Gold reached an overnight high of $3.895.09, as a combination of Fed easing and shutdown anxiety pushed it to a new all-time record. This also supported U.S. Treasuries by sending yields dramatically lower. Gold last rose 0.4% to $3,880.
Overnight, the yield on two-year Treasury bonds fell to a new two-week low at 3.531%. It was last seen at 3.5429%.
Michael Brown, Senior Research Strategist at Pepperstone, said: "As it is usually the case, new highs will likely beget more fresh highs. The momentum remains firmly with bulls and the fundamental argument for further upsides in PMs (precious Metals) is also a strong one."
The U.S. Dollar Index, which measures the currency's performance against six major counterparts, has been stuck near an overnight low of 97.459, which was a new one-week low. It was last trading at 97.567 and down 0.2% on Wednesday's closing price.
In remarks made at an industry conference, Bank of Japan Deputy governor Shinichi Uchida expressed confidence that the conditions were in place for another rate hike.
The euro increased slightly to $1.1752 while the sterling remained largely unchanged at $1.34815.
The oil prices fell on Thursday as concerns over an oversupply of the market continued to weigh.
Brent crude futures dropped 0.4%, to $65.09 a barrel. U.S. West Texas Intermediate crude fell 0.4%, to $61.54 a barrel.
(source: Reuters)