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Chevron and Quantum Energy will bid for Lukoil's global assets valued at $22 billion.
The Financial Times reported that the U.S. oil giant Chevron, along with private equity group Quantum Energy Partners, are teaming up to bid on the international assets of Russian oil company Lukoil, valued at $22 Billion. Chevron's exploration and production portfolio is diverse, globally. The company continues to evaluate potential opportunities. "In all of its activities, Chevron adheres to a code of ethics for business and follows?laws that are applicable to our business." Quantum, Lukoil, and the White House didn't immediately respond to comments. Reports in November said that Chevron was examining options to purchase Lukoil’s global assets. This would be one of the largest energy acquisitions since sanctions against Russia were imposed for its invasion into Ukraine. Also, in December, it was reported that Saudi Arabian Midad Energy is one of the leading contenders for buying Lukoil's foreign assets. The FT reported that if a deal was reached, Chevron would split Lukoil assets with Quantum. (Reporting from Gnaneshwarrajan in Bengaluru, with additional reporting by Shadia Naralla. Editing by Mrigank Dahniwala. Sonia Cheema. and Elaine Hardcastle.)
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Sources say that Thyssenkrupp is considering a phased sale to Jindal Steel of TKSE.
Four people who are familiar with the talks say that Germany's Thyssenkrupp may sell its steel division to India Jindal Steel International over a period of time, as they try to reach a deal on the complex business. Jindal Steel began conducting due diligence in October, after making a bid indicative for Europe's largest steelmaker. Thyssenkrupp needs to focus on becoming leaner. The deal will help them achieve this. The people who spoke to us said that Jindal would take a majority share in?TKSE in a first move, most likely 60%. The remaining 40% could be acquired in two 20% tranches, or all at once, depending on the progress of restructuring. One person said that a phased transaction could give Thyssenkrupp greater flexibility in addressing the 2.5 billion euro ($2.9 billion) pension liabilities? tied to TKSE, which were a major obstacle in previous sales attempts. No details of the possible structure and impact of a gradual takeover on debt obligations were previously reported. The people stated that due diligence is still ongoing and the terms may change. Following the report, shares of Thyssenkrupp increased by as much as 4.9% and rose to the top spot of Frankfurt's midcaps index. One trader said that a sale was "becoming more concrete after years without finding a buyer". JINDAL STEEL DELEGATION SET FOR JANUARY VISIT TO GERMANY The sale of TKSE will end years of trying to find a buyer. This asset, which is central to Germany's industry heritage, was volatile and expensive to operate in the face of tougher Asian competition. After purchasing the smaller Czech competitor Vitkovice Steel, Jindal Steel International, the international steel division of the Naveen Jindal Group in 2024, this would be a major expansion to Europe. Thyssenkrupp stated in a press release that "all aspects of the deal, including valuations, obligations and future investment will be discussed during any contract negotiations and due diligence." It said: "We can't comment on individual statements at this time, as they are only interim in nature." Jindal Steel International had no immediate comment. According to a second source, a Jindal 'delegation' was due to visit Germany for a technical inspection of TKSE Duisburg in January after a December trip had been postponed. Third source says that a phased takeover will also keep Thyssenkrupp in the TKSE restructuring. Thyssenkrupp's CEO Miguel Lopez stated?last months that Jindal Steel would be a good fit for TKSE. He added that a sweeping reorganization plan to reduce jobs and capacity was what prompted the Indian group’s interest. Lopez, without providing details, said Thyssenkrupp had a backup plan in case talks with Jindal Steel International failed. Reporting by Tom Kaeckenhoff, Neha Arora and Christoph Steitz. Aditya KALA contributed additional reporting. Adam Jourdan (editor), Mark Potter, and Alexander Smith (editors)
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China's central banks purchases gold for the 14th consecutive month
The People's Bank?of?China (PBOC),?released data on Wednesday, showed that China's central banks extended their gold buying spree for a?14th month. China's gold reserves increased to 74.15 millions fine troy-ounces by the end of December from 74.12 at the previous month. According to the PBOC, China's gold reserve value increased from $310.65 to $319.45 at the end of last month. The gold price, which has long been regarded as a?safe haven asset during political or economic turmoil, soared by?more? than 46% in the past year. This was its biggest annual increase since 1979. This was due to the U.S. Federal Reserve cutting interest rates, geopolitical tensions, and robust purchases by global central banks. The spot gold price was around $4,465 an ounce after hitting a record high of $4,549.71 on Monday. Traders were assessing the potential 'rate-cut path' of the Fed for 2026, and the implications of the U.S. capture of President Nicolas Maduro. In May 2024 the PBOC halted a 18-month gold buying spree, but six months later resumed its purchases.
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Heatwave in Australia's south causes bushfires
Australia's southern region was sweltering in a brutal heatwave Wednesday. Temperatures reached above 40 degrees Celsius, or 104 degrees Fahrenheit, in some cities. This triggered health warnings and caused power grids to strain. Meteorologists stated that conditions were the worst they had seen in six years when bushfires devastated large areas of southeast Australia and killed 33 people. This was known as the Black Summer. The National Weather Bureau issued extreme or severe heat warnings to the states of New South Wales and Victoria. The weather bureau also warned about extreme fire danger in Victoria and South Australia. Sarah Scully, Senior Meteorologist said: "These elevated fire dangers are driven by an extremely hot air mass that extends from Western Australia and has temperatures exceeding 45 degrees." Authorities in Victoria, where temperatures can reach up to 44 C and 41 C at the state capital Melbourne, have advised residents to remain indoors and stay hydrated. Tim Wiebusch, Victoria's Emergency management Commissioner, said that firefighters are battling multiple fires throughout the state. The conditions will worsen on Friday. He said that the conditions are now spreading across the entire state. "We have already sent out a statewide warning for heatwaves of severe to extreme intensity," he explained. "We want Victorians in particular to be aware of their conditions, and to stay cool." The temperatures also reached 31 C in Sydney, 32 in Perth, and 43 in Adelaide. Some public places, like libraries, extended their opening hours to keep residents cool. Others?like Monarto Safari Park had to close for the day. In Adelaide, more than 2,000 households lost power. I think you need to be calm and not panic in the heat. It's just two or three days. Valdine, a resident of Adelaide, told ABC that it would go down again.
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Nickel prices remain high despite copper nearing record levels
Nickel remained near multi-month highs as expectations of tighter supplies from Indonesia, the top nickel producer, kept it steady at record levels. The Shanghai Futures Exchange's most traded?copper contracts closed the daytime trade?0.11%?higher, at 103410 yuan (14,800.13 dollars) per metric ton. This is still below a previous record of 105500 yuan. As of 0700 GMT the benchmark three-month price of copper at the London Metal Exchange was down 0.87%, to $13,122.50 per ton. This is after it reached an all-time record high of $13,387.50 a ton on Tuesday. Citi raised its copper price forecast for the near term to $14,000 per ton on Tuesday, citing a strong market that exceeded both its baseline and bullish outlook in its December projection. The bank's average 2026 forecast remained at $13,000. Citi stated that January could be the 'peak for copper prices in this year. Without fresh market catalysts supporting its $15,000 bull case scenario, prices will likely 'decline towards a sustainable level of around $13,000. Nickel prices rose to a 19-month high after the Indonesian government cut the mining quotas for 2026. Shanghai nickel closed the daytime trading at 147,720 Yuan per ton. This is the highest level since June 2024. London nickel climbed 0.11% to $18,545 per ton after reaching its highest level since June 2024 at $18,785. Analysts at Sucden?perceive the metal's increase as "more susceptible to near-term profits-taking", citing a weaker fundamental basis. Shanghai tin rose 5.33%, while the London benchmark added 1.22%. Investors will also be evaluating the Federal Reserve interest rate path in this month to get a better idea of how commodities are moving. Fed Governor Stephen Miran stated on Tuesday that the interest rates were too restrictive and that a cut of "more than 100 basis point" is needed to support growth this year. The U.S. attack against Venezuela and the capture President Nicolas Maduro are still in the spotlight. Other base metals in the SHFE rose by 1.18% for aluminium, 0.81% for zinc, and 1.83% for lead. The LME's other base metals saw a drop of 0.37% in aluminium, a dip of 0.28% in zinc, and 0.19% increase in lead. $1 = 6.9871 Chinese Yuan Renminbi (Reporting and editing by Lewis Jackson, additional reporting by Dylan Duan.
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BlueScope Steel shareholders seek price increase for $9 billion purchase offer
BlueScope Steel's investors are hoping for a A$13.2billion ($8.92billion) buyout bid from SGH or U.S. based Steel Dynamics to win their support in selling Australia's biggest steelmaker. BlueScope shares closed?1.12% higher at A$29.87 on Wednesday, a fractional amount below the A$30 offer per share made public on Monday. The BlueScope board has yet to deliver an official recommendation on the all-cash bid, which was the fourth approach from Steel Dynamics put to the Melbourne-headquartered firm since late 2024. According to the agreement, SGH, owned by Australian billionaire Kerry Stokes would purchase BlueScope, and then sell the North American assets of the steelmaker to Steel Dynamics. BlueScope's shares trading near the offer price suggest that the market is expecting the deal to proceed. However, some investors believe the price should be raised to gain their support. Jamie Hannah, VanEck's deputy head of investments, said: "It is good to see some interest in BlueScope. However, looking at the valuations, we think it is not enough." "I think that the way things are going, they will have to increase their offer if they hope to convince any of the shareholders to sign." AustralianSuper, BlueScope’s largest shareholder with a 12,5% stake, refused to comment. The bid could not proceed without its backing, since Australian pension funds are often active in corporate transactions. AustralianSuper rejected Brookfield's bid of $10.6 billion for Origin Energy 2023, saying that the offer was too low. SGH's spokesperson stated that its bid for BlueScope will give shareholders an "immediate, certain?opportunity?to realise a material increase in value and a high attractive premium." BlueScope Steel Dynamics and Steel Dynamics have not responded to our requests for comment. Joseph Koh is the portfolio manager of Blackwattle Investment Partners which owns BlueScope stock and SGH. Macquarie analysts stated in a research report that they felt investors perceived the price to be low, but the deal prospects were real. They said that "a shift in economics and terms is likely to occur as time goes on."
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As global tensions increase, crude oil prices fall and shares decline
Crude futures fell?and stocks in Asia declined as markets struggled to deal with the ramifications and fate of Venezuela's petroleum reserves. The oil prices continued to fall after U.S. president Donald Trump announced that Venezuela would "turn over" up to 50 million barrels to be sold at market price, following the capture and toppling of the nation's leaders. Japanese shares fell sharply while gold and industrials metals were near record highs. Geopolitical tensions in South America and China dominated the yen rally, while investors looked for clues on the timing of possible interest rate cuts from the Federal Reserve. Michael McCarthy, CEO Moomoo Australia & New Zealand's investment platform, stated that the most likely outcome of the turmoil in Venezuela is an increase in the global economy. "Clearly, it's negative for oil prices themselves. But energy costs are crucial to your global economy outlook." He added: "On the flip side, the increased uncertainty in the geopolitical landscape could overwhelm any positive economic benefit." U.S. crude oil fell by 1.66%, to $56.18 per barrel. Brent dropped to $59.94 a barrel. This is a 1.25% drop on the day. MSCI's broadest Asia-Pacific share index outside Japan fell 0.6%. Japan's Nikkei stock index slid 1.1%. The S&P/ASX 200, a heavily-weighted index in Australia, which is dominated by commodity producers, rose 0.2%. Hong Kong's Hang Seng index fell 1.3% after giving up some gains following a three-day rise. The Euro Stoxx '50 futures for?European equity market rose 0.05%. German DAX Futures rose by 0.2%. FTSE Futures fell 0.24%. The S&P 500 eminis futures in the U.S. were down 0.04%. Trump announced on Tuesday that Caracas has reached an agreement with Washington to export Venezuelan crude oil worth up to $2 billion to the United States. The agreement follows a weekend attack on Venezuela and comments from the White House that they were looking at ways to acquire Greenland, with the U.S. using its military as a means of achieving that goal "always being an option". Venezuelan President Nicolas Maduro is still awaiting drug charges in a New York prison, whereas opposition leader Maria Corina Machado said that she wanted to return to the country to lead it. The dollar index (which measures the greenback in relation to a basket currencies) fell 0.06%, reducing its?0.2% increase on Tuesday. The euro remained at $1.1691, and the yen gained 0.2%, to 156.42 dollars per yen. China announced a ban on dual-use products that could be used to make weapons for export to Japan. This was Beijing's response to the remarks made by Japanese Prime Minister Sanae Takayichi regarding Taiwan. Nickel jumped over 10% in the last session as concerns about supply fueled gains?in industrial resources. The key U.S. employment report due on Friday is likely to influence the market's expectations for monetary policy. The current price of two additional Fed rate cuts in this year has been priced into the market. The JOLTS survey, and ADP private pay on Wednesday are two important events that will likely influence the market's monetary policy expectations. Data from the Asian trading day showed that core inflation in Australia slowed a little and consumer prices increased less than expected. In Japan, a private sector survey showed that the service sector grew at its lowest pace since May. Spot gold dropped 1.1% to $4.448.29 per ounce. Copper fell 1.34%, to $13,060.50 per ton. Bitcoin fell by 0.8%, to $92,496.86. Ether also declined by 0.8%, to $3,247.70. (Reporting and editing by Christopher Cushing, Shri Navaratnam and Rocky Swift from Tokyo)
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Indian jewellers' stock shines on the back of strong festive-quarter sale and higher gold prices
The shares of Indian jewellery retailers rose between 2% to 13% after companies reported strong sales growth for the quarter ending December, driven by robust demand during the festive season despite a rise in gold prices. Titan Company shares rose 4.8%, reaching a record high of 4,307.80 Rupees. The company had reported a 40% increase in sales. Kalyan Jewellers & Senco Gold also?also rose 3.7% & 12.2% respectively after their quarterly update. Spot gold prices rose by nearly 12% in the last quarter of the year, closing out a calendar where precious metals saw their steepest increase since 1979. This was due to geopolitical uncertainty, rate reductions and central bank purchases. Dharmesh kant, the head of equity research for?Cholamandalam Securities, said that higher?prices had an impact on volume, but not (on) overall spending. Kant said that jewellery companies also benefited from the increased cash in people's hands as a result fiscal policies such as GST reductions?and income taxes relief as well as low prices.
Stocks, oil gain; investors downplay Venezuela events
On Monday, major?stock indices rose and oil prices rose. Energy shares climbed and investors were largely calm about potential market ramifications following a U.S. strike that captured Venezuelan President Nicolas Maduro.
Early in the morning, Dow Jones Industrial Average reached a new record high. S&P 500's energy index rose more than 2 percent, with Exxon Mobil shares up over 2 percent and Chevron shares up over 5 percent. Financial shares rose as well, and an S&P defense index was up over 1%.
Donald Trump, the U.S. president, said that after the dramatic events in Venezuela at the weekend he would temporarily take control of the South American country and that he might order another strike should Venezuela not cooperate with U.S. efforts for Venezuela to open its oil industry and end drug smuggling. He also threatened to take military action in Colombia, Mexico and other countries.
The price of oil also increased as traders assessed possible impacts on crude flow from Venezuela - the country with the largest global reserve.
Oliver Pursche is senior vice president and advisor at Wealthspire Advisors, based in Westport, Connecticut. He said that the markets are responding to the geopolitics of Venezuela by ignoring it largely, except for a few oil companies which have seen their stock prices spike.
He said that "Venezuela’s GDP has almost no impact on the global GDP... therefore, the market should ignore this."
The Dow Jones Industrial Average gained 600.51 points or 1.24% to 48,982.9. The S&P 500 gained 46.32 points or 0.66% to 6,903.79, and the Nasdaq Composite added 203.37 or 0.88% to 23,439.00.
The European stock market was up by 0.9%.
Brent crude futures rose 87 cents or 1.43% to $61.62 per barrel. U.S. West Texas intermediate crude gained 90 cents or 1.57% to $58.22.
US MILITARY MEASURES IMPLEMENT SAFE-HAVEN REQUEST
The appeal of gold as a safe haven led to its rise. By 11:20 am, spot gold had risen 2.7% to $4,447.05 per ounce. ET (1620 GMT), having earlier reached its highest level in over a month. Gold reached an all-time high of $4,499.71 on December 26.
The dollar index fell slightly on Tuesday after reaching a near four-week high against a variety of currencies on Monday, following a weaker December. Traders were focused on the raft of important economic data this week and ignored events in Venezuela.
The dollar index, which measures the strength of the dollar against a basket of six currencies, was last down 0.2%. The dollar index, which measures dollar strength in relation to a basket six currencies, fell last by 0.2%.
This week's data release begins on Monday with ISM manufacturing numbers and concludes on Friday with the non-farm payrolls monthly report.
The yields on U.S. Treasury bonds have risen.
(source: Reuters)