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TechMet, a mining investor, forms a US subsidiary to attract additional capital
TechMet, a mining investor, announced on Monday that it would 'form a U.S. based subsidiary in order to attract capital from both public and private partners for critical minerals projects. The U.S. Government is a major shareholder in Dublin-based TechMet. This new subsidiary will help the company boost the mining industry of the United States, which was highlighted by President Donald Trump last week. Brian Menell is the CEO of TechMet. He said, "This is a significant acceleration in TechMet's commitment towards building out its U.S. critical minerals production platform." Menell will be appointed chairman of the U.S.-focused company, which will hold TechMet's stakes in the lithium startup EnergySource Minerals and the U.S. Vanadium is partnering with Momentum Technologies, Xerion Advanced Battery and battery recycling company Momentum Technologies. TechMet is the largest shareholder of all four companies, having invested over $400 million in them. Menell stated that the U.S. subsidiary would be based in Washington, D.C., with an initial goal to get those four companies into commercial production before considering other investments. He said that there was no question about spinning off the company, distributing it, or realizing its value. "We see billions of dollars in value and relevance that we must make happen in the U.S., and want to be a part of it in 'the long-term." TechMet, a privately-held company, also holds stakes in other mining companies outside of the U.S. including Brazilian Nickel and South Africa’s Rainbow Rare Earths. (Reporting and editing by David Gaffen; Ernest Scheyder)
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Morning Bid - Americas- Fed's Cook grills again
What's important in U.S. and Global Markets Today By?Mike Dolan Editor-at-Large for Finance and Markets The surprise drop in U.S. July payrolls did not affect interest rates as much as initial reactions might have suggested. The markets are still pricing a 50-50 chance of a Federal Reserve rate hike next month. Meanwhile, Treasury yields only ended marginally lower for the day. Below, I'll go into more detail. Listen to the Morning Bid podcast to hear about the recent soft jobs report and President Trump’s renewed efforts to fire Fed Governor Lisa Cook. Subscribe to the Morning Bid daily podcast and hear our journalists discuss all of the latest news in finance and markets seven days a weeks. FED'S COOK GREENED AGAIN After the soft numbers on jobs, there were several reasons why the markets were cautious, including a drop in unemployment rates that was equally surprising, oil prices that remained edgy, and fresh political pressures on the Fed. In addition, the Treasury issuing $125 billion of new debt this week. On Wednesday, the consumer price index for July will be released. This is a report that could prove to be more important than any other. The annual headline and core rates will likely be lower this month, though the first is expected to remain above 3%. Brent crude rose above $84 a barrel on Monday as Tehran demanded that Washington make concessions before the Strait of Hormuz was reopened. This is not helping to lift spirits, and hopes of a deal with Iran were dampened by this. Concerns about Fed independence were reignited on Friday when President Donald Trump ordered that Lisa Cook respond to mortgage allegations made against her in three weeks or face dismissal, which the Supreme Court had already ruled was not appropriate. LSEG data show that stock markets continue to bask in the glow from a second quarter earnings season which has seen an aggregate annual profit increase of 51% among S&P 500 firms. Asia's stock markets rose on Monday in line with Wall Street's gains from Friday. U.S. equity contracts were also slightly higher before the bell. China's July Inflation numbers were below expectations on Monday. There is little else on the agenda for today, as the earnings season has slowed down this week, even though there are updates from Applied Materials Cisco and CoreWeave. Chart of the day Payrolls fell unexpectedly by?23,000 in July, and the economy added 103,000 less jobs than originally estimated in May and June. Over the last three months, job growth has averaged 20,000 jobs per month. The President Donald Trump fired Erika McEntarfer, the BLS Commissioner, last year after he downgraded?May's and?June's data. Trump accused McEntarfer, without providing any evidence, of manipulating data. The Senate confirmed Brett Matsumoto, a career economist, to be the BLS commissioner on Friday. Watch today's events * U.S. Conference Board Employment Trends Index for July (10 am EDT) * Beth Hammack, Cleveland Fed (3:00 p.m. Eastern) Want the Morning Bid delivered to your inbox each weekday morning? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent those of News. News is committed, as part of the Trust Principles to independence, integrity and a lack bias. (By Mike Dolan).
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Gold gains as Fed hike expectations fade and US inflation data is in focus
Gold prices climbed a little higher on Monday, after hitting a seven-week high the previous day. Weak U.S. job data dampened expectations for Federal Reserve interest rate hikes. Investors are now looking forward to inflation data as they seek new clues about the central bank's future policy. As of 0856 GMT, spot gold was up by 0.1% to $4,345.09 an ounce. After weak U.S. payrolls data, prices hit their highest level since June 17 last Friday. U.S. Gold Futures rose 0.1% on Monday to $4,404.80. The gold price continues to benefit from the positive momentum of last week, after the disappointing U.S. "Gold prices continue to benefit from last week's positive momentum, following the disappointing?U.S. The data showed that the U.S. economy shed unexpected jobs in July. Previous job gains for the previous two months were sharply revised lower. This has weakened expectations of a Federal Reserve rate increase next month. According to the CME FedWatch Tool, traders now price a 44% probability of a rate increase in September. This is down from 57% prior to the jobs report. Bullion does not earn interest, so a lower interest rate environment makes gold more attractive than income-generating assets. Investors will now be waiting for the U.S. producer and consumer price data, due Wednesday, to get more clues about the Fed's outlook. Economists surveyed by predict that the consumer price index for July will?have increased?3.4% on an annual basis, compared to 3.5% in June. "A headline number below the consensus forecast, 3.4%, could further reduce expectations that the?Fed will increase rates before the end the year. This would weaken the?dollar while creating upside potential for the gold price," said Evangelista. Iran has said that it is close to a?final pact? with Oman defining?new shipping?lanes? between them via the Strait of?Hormuz. However, the U.S. still needs to meet certain conditions before this strategic waterway can be reopened. Silver spot rose by 0.9%, to $64.14 an ounce. Platinum fell 0.4%, to $1737.42 and palladium dropped 1.2%, to $1360.75. (Reporting from Bengaluru by Pablo Sinha;)
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Officials say that Ukraine killed 13 people, including a child, in a drone attack on the Russian city of Nizhnekamsk.
Authorities said that at least 13 people, including a child, were killed and 39 others injured by a Ukrainian drone strike on industrial and civil targets in Nizhnekamsk. This is the highest civilian death toll in Russia for months. According to Russian media, the attack also targeted a major oil refinery in the Tatarstan Region, located about 800 km (497 mi) east of Moscow. In a press release, Russian investigators announced that they had opened a criminal investigation into the attack they deemed a terrorist act. They said that Ukraine struck residential areas in which a child was killed. Radmir Belyayev said that Rustam Minnikhanov has declared a day of mourning in the Tatarstan region of Russia, Radmir Belyayev is the mayor of Nizhnekamsk. Russian media reported that the region's oil refining facility, which is one of Russia's most technologically advanced refineries, was targeted in this attack. Unverified videos posted on social media show smoke rising above what appears to an oil refinery. The footage could not be independently verified. Ukraine did not comment immediately. Tatneft’s TANECO, which was also struck by Ukraine in June, processed 17 millions tons of crude oil - producing 2.7million tons of gasoline, and 8.5million tons of diesel fuel - in 2024. Ukraine intensified its attacks on Russian oil refineries over the past few months, leading to fuel shortages across Russia. Ukraine claims it wants to pass on the cost of Russia's conflict to ordinary Russians. Moscow imported fuel to boost supplies. Both sides claimed lethal attacks on?Sunday. In a Russian attack on Kharkiv in eastern Ukraine, 37 people were injured and three were killed. Meanwhile, authorities in Belgorod, Russia, reported that five people had been killed and 25 others wounded by an Ukrainian drone attack. Both Ukraine and Russia claim they don't target civilians. (Reporting and writing by Gleb Stlyarov/Andrew Osborn, Editing by Andrew Osborn & Sharon Singleton).
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Hungary switches one Paks generator back on as Danube levels rise
After a rise in the water level on the Danube River, which cools the plant, Hungary began to turn back on a generator at the Paks nuclear power plant on Monday. This will provide some relief for the facility that supplies nearly half of the country's electricty. In recent weeks, the Danube reached record lows amid a heatwave and a drought that lasted across most of Europe. The plant was forced to run at just 10% of its full capacity. Only one of eight turbines remained operational. The droughts in Europe this summer have already caused havoc with the power, shipping, and health systems. The economic impact on the region is estimated at hundreds of billions. In 'Romania, for example, similar problems forced the declaration of an energy emergency for the entire month of August. The flow of the Danube was redirected so that its single nuclear plant could continue to 'operate for the next couple of days. DANUBE RISE MIGHT BE ONLY TEMPORARY Peter Magyar, the Hungarian prime minister, said that on Monday work had begun to restart a second Paks turbine after the Danube climbed 19 centimetres over its low of last week. He said that the second turbine would start producing electricity by Monday evening. Magyar warned last week that rain in Austria might raise the Danube level, but that it would only be temporary. Magyar said that last week, the government was working on a longer-term solution. This included reviewing the Paks 2 expansion as the current design makes the new?plant dependent upon cooling water from Danube. Magyar, who spoke last week, said that it was important to keep the nuclear power plant running, because "the Hungarian economic system cannot function without the plant for months." Magyar said that the government would also tender 700 megawatts by August 31, and develop four gigawatts by 2030. (Reporting and editing by David Holmes; Anita Komuves and Krisztina than)
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Sources say that India's Hindustan Copper intends to sell copper concentrate from Chile to Hindalco and Adani.
Hindustan Copper, the state-run copper company, plans to sell copper concentrate from mines that it has acquired from Chilean Codelco?to?Hindalco & Adani in order to satisfy India's increasing appetite for the red metal, according to two sources who are familiar with the matter. Three sources declined to identify themselves because the discussions were confidential. Codelco's secretary of mines in India said that in April, Hindustan Copper, Coal India, and NTPC Mining were in talks to acquire four copper mining block from Codelco. Hindustan Copper had signed a preliminary deal with Codelco last year to look at "mutually advantageous opportunities" in mining and exploration. In May of this year, the company signed a nondisclosure contract with Codelco and appointed an advisor. It did not reply to a comment request. It denied in the past that it was in talks for a joint-venture. Codelco and NTPC Mining & Coal India did not respond immediately to a comment request. The government said that India, which is the second largest importer of refined copper in the world, could have to import between 91% and 97% its copper concentrates by the year 2047. Hindalco is owned by the Aditya Birla Group and is India's largest aluminium and copper producer. Adani, the conglomerate that owns Kutch Copper in Gujarat's western state, claims it is the largest single-location smelter of its kind. Two sources claim that 'due diligence' is being conducted and Hindustan Copper would be open to partnering with Coal India or NTPC Mining for the JV. Sources said that a team of technical experts from Hindustan Copper, as well as executives from NTPC mining?and Coal India, visited Chile in early this year. They added that it would still be a decade until mining and concentrate production could start. The government of India announced last year that it would include a chapter on copper in the free trade talks with Chile to ensure a 'fixed quantity of copper concentrator. India produces around 573,000 tons of refined cobalt annually, but the demand is higher at around 1.8 millions tons.
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Cost of living in Nigeria is increasing as elections approach
Grace Adama puts on her earrings in her two room flat, before she grabs her bag and leaves for work in Abuja. Her salary of 135,000 naira ($99), nearly double that of the minimum wage in Nigeria, is not keeping up with rising costs. She said, "If I'm paid today my salary will only be with me for one week." "The cost of housing, electricity and living has all gone up." The living standards of millions in Africa's biggest oil exporter have plummeted in the last three years, as President Bola Tinubu has pushed through painful economic reforms including the removal of fuel subsidies, devaluation of the naira and cuts to electricity subsidies. Investors and the government agree that the reforms are essential for pulling the country away from fiscal crisis. They will pay off over time. According to SBM Intelligence, a Lagos-based index that tracks prices for ingredients used to make the dish, Nigerians now pay more than twice as much to make jollof than they did before Tinubu became president. The price of petrol has increased six-fold since the subsidy was removed, as well as because the naira depreciated and oil prices soared. INVESTORS CHEER FOR REFORMS, NIGERIANS BRISTLE World Bank estimates that just over half the?Nigeria population was in poverty in 2012. This is up from 42% in 2022. Investor optimism is in stark contrast to the citizens' struggle under Tinubu. Thys Louw said, "This is probably the most positive investors' view of Nigeria in the past?two decades," a portfolio manager with investment firm Ninety One. "They are taking the harsh medicine now." The gap between Adama and the booming financial markets adds another dimension to a nation already defined by contrasts. There are marble-laden mega-mansions in Lagos, and shacks with tin roofs that house entire families. Tinubu has to convince the voters that they will also benefit from the reforms before the January elections. "I cannot even send money to my elderly mother in Benue state (which is several hours away) ...(. Adama added, "I can't do many things that I used do before." She had reduced her meat intake and moved into a smaller apartment. However, she still relied upon short-term loans for bills. Tinubu’s tenure followed eight years under President Muhammadu Buhari of unorthodox policies, such as import bans for local industry, currency controls, and petrol subsidies. The result was a shortage of imports and a difficult time getting money out of country or foreign exchange. Fuel subsidies also drained $10 Billion from the government's coffers. Nigerian Finance Minister Taiwo Oyedele said at a recent Abuja event that "we were living in fiscal delusion." "We had to stop lying to ourselves in order for the country to'move forward.'" Tinubu's government says reforms are bearing fruit, pointing to the Nigerian stock exchange, up close to 60% this year, the transfer of oil assets to local companies and the 2024 opening of the 650,000-barrel-per-day Dangote oil refinery just outside Lagos. According to the National Bureau of Statistics, capital inflows into Nigeria reached a six-year record of $23 billion, reflecting investor confidence. The Nigerian bourse said that fewer than 5 percent of Nigerian adults invested in the capital markets. Inflows were concentrated in short-term "Treasury Bills" and other financial instruments, which investors could quickly sell in the event of trouble. The key interest rate of the central bank is 26.5%, and businesses and individuals are struggling to obtain affordable loans. Petrol prices in Nigeria average 1,600 naira per litre ($1.18), which is lower than the neighbouring Ghana and Ivory Coast but still too high for those who have been used to cheap fuel being their primary government benefit. Eji Uchenna, a Lagos food seller, said: "The government should lower the fuel prices." His customers are no longer able to afford bulk purchases. SITTING ON GUNPOWDER Federal workers threatened a nationwide strike in June after rejecting a proposed minimum wage of 100,000 naira. SBM Intelligence's June voter sentiment tracking showed that 80% of Nigerians believe the country is moving in a wrong direction. Kidnapping is a major concern, and security is the top priority. SBM's Cheta Nwanze, Chief Executive of SBM, said that anger against Tinubu would not necessarily result in his downfall given the fragmented opposition. Nwanze stated that "the opposition is divided and... the only thing they can do to beat Tinubu, is to be united." Louw said that if the government continues with its current policies, workers will start to reap the benefits as inflation drops, resulting in lower interest rates. Oyedele said that the government needs to do more in order to "ensure prosperity for all Nigerians". When inequality persists, the situation becomes dangerous. "It's like sitting in gunpowder. It explodes."
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Summer heat drives record-early night harvest at Catalan winery
Workers at a winery north of Barcelona, wearing headlamps, and equipped with secateurs, light up vineyards before sunrise -and begin picking grapes as early as 3 a.m. The scorching heat in the region has led to the earliest grape harvest ever recorded. Workers at Gramona in Anoia have started harvesting several weeks before the usual August dates. Businesses and institutions are adapting to climate change after back-to-back extreme heatwaves in Europe. ?Roc Gramona is the technical director of the winery. He said that the?heat caused stress for many people and even medical problems for some. He said: "We had no choice because the temperatures of?35 or 45° Celsius (95-113° Fahrenheit) was too high for them." Gramona said that the heat also stressed out plants, causing grapes to ripen faster. "I don't think we will go back to the daylight harvest. We will continue picking at night." According to Climate Monitor, the average temperatures in Barcelona for July were 5,8 C higher than the historical norm from 1961-1990. David Altes, a labourer, explained that starting early in the morning allows the crews to work at cooler temperatures, and ensures the grapes arrive in the winery?in optimal condition. This year, Gramona started its harvest on July 22. It was the earliest harvest recorded in Catalonia. Chardonnay, Pinot Noir and other varieties are currently being harvested. Both are used to make sparkling wine. (Reporting and writing by Horaci Garca; editing by Lincoln Feast; Javi West Larranaga, Javi West; Javi West; Javi West; Javi west; Javi west; Javi west; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest; Javiwest;?being harvested are Chardonnay and Pinot Noir.
Oil prices steady as global stocks rise
As markets waited for Wednesday's key U.S. Inflation data, global equities edged higher on Monday. Oil prices remained largely?steady as Iran announced it was close to a final agreement with Oman that would define new shipping lanes in the Strait of Hormuz. The Stoxx 600 index for Europe rose by 0.1%, while the S&P 500 futures in the U.S. climbed by 0.2%, and the Nasdaq tech-focused index gained 0.4%. Iran announced on Sunday that it was nearing the final stages of a deal to allow Oman transit through the Strait of Hormuz. However, the country reiterated that this waterway will only be reopened once the United States meets other conditions. Brent crude was little changed at $83.50 per barrel, as shipping through strait continued to be a trickle. However, it still remained below the peak price of $126 a barrel in late April. Asian shares rose over night, following Wall Street stocks which reached a record high Friday, after a weaker than expected U.S. job report caused traders cut their bets on Federal Reserve interest rate hikes. Japan's Nikkei gained 2.1% while South Korea gained 0.7%. The MSCI index, which measures global stock prices, rose 0.1% overall on Monday. Mohit Kumar is a senior European analyst at Jefferies. He said, "We remain confident that the Fed will not hike rates this year." The key would be the inflation report this week." The economists polled by? The U.S. consumer price index for July is expected to rise 3.4% on an annual basis in the data released on Wednesday. This compares to a 3.5% increase the previous month. The Core CPI (which excludes volatile energy and food prices) is expected to rise 2.5% from 2.6% last month. If oil prices are contained and continue to fall, the Fed will not need to raise rates. Kumar explained. The Fed futures traders have reduced their bets for a rate increase and now expect a 45% chance that it will happen in September, down from 67% one week ago. Earnings have helped to boost stock markets in recent weeks. Strong corporate earnings are a major factor. Analysts from BofA stated that earnings per share had increased 30% over the past year, even after Alphabet's and Amazon's investment gains were excluded. A 76% EPS beating rate is the highest since 2021. JPMorgan strategists revised their 2026 EPS estimates to $365. This represents a 35% annual increase. They also raised their S&P500 price target from 7,800 to 8,000. It is currently 7,758.
This week's earnings are lighter, but still include semiconductor maker Applied Materials and networking equipment maker Cisco as well as cloud infrastructure technology provider CoreWeave. The yields on 10-year Treasuries dropped 1 basis point, to 4.643%. This week the market is expecting $125 billion of new issuance. The currency markets were largely?steady. The euro was just off its seven-week high at $1.156. The dollar gained 0.4% versus the yen, reaching 158.48. Investors were wary about any intervention. A summary of the opinions expressed at the Bank of Japan's July meeting revealed that policymakers were concerned about rising inflation, which could lead to a quicker-than-expected rate of interest rate hikes. This strengthened the case for an increase in September.
(source: Reuters)