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Barrick names Sebastiaan Bok to lead the international business ahead of IPO
Barrick Mining announced on Tuesday that it has appointed Sebastiaan bock as the chief executive officer for its Rest of World division. He will be in charge of all gold and copper projects and operations outside North America. Barrick now has a global leader to lead its international business. The company is preparing to divide its North American assets from its overseas assets, in an effort to sharpen management focus and reduce the 'valuation drag' investors apply to miner with exposure to high-risk jurisdictions. Bock will oversee a portfolio that spans Africa, the Middle East and Latin America, as well as Asia Pacific, producing more than 2,000,000 gold-equivalent pounds annually. The appointment follows Barrick's successful resolution of a long-running dispute with Newmont regarding Nevada mining assets. This cleared the final hurdle to a planned initial IPO of its North American Gold assets which the company anticipates to be completed by the end of the year. Newmont has agreed to pay Barrick 1,95 billion dollars in cash within 30 day and consented for the IPO. On its call to discuss its second-quarter earnings, the company stated that it was seeking a new CEO to run its operations outside North America. Bock?joined Barrick as finance chief?for Africa & the Middle East in 2019. He will become chief operating officer?for the region?in 2020, according to the company. Barrick said its international operations could benefit from closer ties to Chinese partners, through joint investments and technology access. (Reporting and editing by Tasim Zaid in Bengaluru, Varun Sahay from Bengaluru)
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MORNING BID AMERICAS - Long bond
What's important in U.S. and Global Markets Today By Mike Dolan, Editor at Large, Finance and Markets Brent crude traded at almost $90 per barrel on Tuesday, after a 5% increase yesterday. The U.S.'s and Iran's hard-line positions on any potential deal have shattered hopes that the Strait of Hormuz could reopen. Below, I will go into more detail. Check out my column about Trump's latest attack on the independence of the Federal Reserve - and how it comes at a nervous time for bond markets. Listen to the Morning Bid podcast where we talk about Nvidia's $500 Billion AI funding push, and much more. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a week. LONG BOND BOTHER The White House insisted on Monday that Tehran compensate itself and open up all shipping routes. Oil markets are bracing themselves for a prolonged standoff. This will add to the persistent inflation concerns, push?bond yields up and restrain stocks despite a bumper second quarter earnings season. The 30-year Treasury Bond yield is just a hair away from its highest level in nearly 20 years. The Japanese yen fell past the 159 per dollar level on Monday, and continued to fall into Tuesday. Tokyo markets were closed today due to a holiday. The currency markets seem to be testing the will of the U.S. government and the Japanese authorities in their efforts to maintain the yen after the recent historic joint intervention. The currency is being gnawed at by doubts over the Bank of Japan’s willingness to tighten its monetary policy to support the yen buying. There are also concerns on the U.S. Bond Market that a Japanese dollar-sales campaign could lead to a liquidation of Japan's huge Treasury holdings. CoreWeave will also report its U.S. earnings for Tuesday, and this will provide a 'another look at the size of data centers demand in the AI boom. Nvidia announced on Monday that it is working with six Wall Street giants to raise a half-trillion dollars worth of financing to support the AI infrastructure push. Intel, meanwhile, raised $20 billion on Tuesday from a larger share offering. Its shares fell 4% after the announcement. Chart of the Day Japan's yen has weakened this week, testing both the Japanese and U.S. authorities' resolve to continue supporting the currency following the recent historic interventions. The yen buying salvo, which was almost $100 billion in dollar sales, squeezed the speculative short yen positions after they had risen to two-year highs. It is now an open question whether speculators are emboldened enough to rebuild their short positions. Even though Japan's stock markets were closed on Tuesday for a holiday, there is still a lot of trepidation about more intervention. Watch today's events * ?U.S. existing home sales (10 a.m. EDT), 3-year ?note auction (1 p.m. EDT) You can receive the Morning Bid every morning in your email inbox. 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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Three reactors shut down by jellyfish at French nuclear plant
Operator EDF reported that three reactors were shut down at France's Gravelines nuclear power plant late Monday night due to an enormous swarm. This triggered preventative measures implemented last year, after the entire facility went offline. The plant is located in northern France and is the largest of its kind in the country. It is cooled by a canal that connects to the North Sea. The six units produce 900 Megawatts each or 5.4 Gigawatts total. Due to the swarm, reactors 2, 3, and 4 have been taken offline. Reactor 1 has also had its output limited to 50% as a precaution. EDF reported that reactor 5 had been 'already taken offline for maintenance' and reactor 6 was still fully operational. The operator implemented new monitoring?and trawling methods to try to avoid or limit future events. Engineers at EDF have installed fixed cameras in the intake?canals, on the filter drum screens and the intake?canals to detect any blockages as quickly as possible. The engineer explained that the company also has partnered with two French fishing organisations and one sea rescue organization, who monitor for swarms. They can then raise an alarm to allow fishermen to conduct targeted trawling to reduce swarm density before they reach the plant. After an initial alert was raised on Saturday, the?fishing boat were deployed to limit the impact of the swarm. He said that vacuum trucks are used to remove the jellyfish already present on the site. They added that since no new jellyfish have arrived, the cleanup has been completed, and should lead to a "quick restart" of the units. EDF stated that the situation has no impact on the safety or environment of the facility. Scientists warn that such events may become more frequent due to factors like global warming, the arrival and spread of invasive species as well as habitat loss for predators. EDF also has heat-limited reactors across the country as a 5th heatwave?is expected to continue throughout the week, and?limit French nuclear output. A reactor in the North has been off-line for the majority of the summer because of low river levels. Another reactor has only had a few restarts, and has remained mostly offline for the bulk of July.
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The rupee falls to a near two-week-low as the US-Iran standoff drives oil prices higher
The Indian rupee fell to its lowest level in almost two weeks on Tuesday, as oil prices rose due to the fading hope of a U.S. Iran deal that would 'end the war' and reopen "the Strait of Hormuz". Traders said that the Reserve Bank of India's likely dollar selling intervention helped to limit the currency losses. The currency was unable to find a balance between competing forces and closed the session at 95.4350 per dollar. This is a 0.15% decrease from the previous close. The Nifty 50 fell 0.5%, and the benchmark 10-year bond also dropped, causing its yield to rise by 3 basis points. India imports almost 90% of its crude oil requirements. Brent crude oil futures rose nearly 2.5% last week to $89.9 a barrel. The rupee was helped by the?absence of large withdrawals or derivative maturities on that day, but if the oil price continues to rise, it is likely to hover around 95.80 in the near future, unless the RBI steps up. The frequent central bank interventions in recent sessions have kept volatility expectations for the dollar-rupee exchange rate in check despite renewed concerns about conflict in Middle East. Dollar-rupee implied volatility for a 1-month period, which is a measure of future expectations fell to 4,6% on Tuesday, its lowest level since late June. This is a reflection of market expectations that central banks will not permit sharp movements. This week, the focus is on the consumer inflation data due for India and the U.S. Analysts at DBS wrote in a recent note that if Brent crude prices stabilize around $70-100 per barrel it will reduce geopolitical 'tail risks' around the U.S.Iran conflict, and keep the FX markets highly data-dependent. (Reporting and editing by Harikrishnan Nair; Ronojoy Mazumdar, Janane Venkatraman and Jaspreetkalra)
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European electricity prices rise as heatwave reduces French nuclear production and German wind
The fifth summer heatwave has pushed up European spot electricity prices by more than 20%. High temperatures are expected to curtail French nuclear power production, and German wind speeds will slow. Heatwaves have caused unprecedented temperatures in Europe, leading to water shortages, fires and even deaths. The French day-ahead electricity prices soared by 21.8%, to EUR142.5 ($164.35), per megawatt hour. In Germany, the contract increased by 22.8%, to EUR138.50/MWh. EDF data shows that the French nuclear production is likely to be limited at its midday peak by 7.3 gigawatts, or about 12% of their entire fleet. France depends on nuclear energy for 70% of its total energy production. Four units will be limited due to the high temperatures of water. Two French reactors will be completely offline. A third?nuclear?reactor is also expected to be shut down due to low river levels. Alessandro Armenia, a Kpler analyst, said that the heatwave in France is expected to peak from Wednesday - Friday. "I'd expect shutdowns from Tuesday or Wednesday and they could last until next week," he added. French regulations limit the amount of heat that plants can discharge in rivers to protect the environment, so reactors are forced to reduce output during heatwaves. LSEG data shows that German wind output will drop from 8.1 GW down to 4.7 GW. This is about 60% lower than the average at this time of the year. Heatwaves can bring still weather and limit wind power. This increases reliance on gas, which has become more expensive due to the ongoing disruptions at the Strait of Hormuz. Germany's increasing reliance on solar and wind has replaced coal and gas, so the country must ramp up gas turbines when wind speeds drop. Nuclear shortages also have a ripple effect across borders. Armenia stated that the outages have a direct impact on Britain and Germany, as nuclear exports are cheaper than coal & gas plants which set prices in neighboring countries. As people use air conditioners and fans, the heatwave will increase demand for electricity. Meteo-France has said that the heat will continue to increase Thursday and Friday with temperatures reaching between 35 and 39 degrees Celsius across most regions. However, it could begin to cool down over the weekend.
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Aluminium reaches seven-week high due to supply concerns and lower stock levels
Aluminum?prices rose to a seven week high on Tuesday, as 'concerns about supply from the Gulf coincided wth Norsk Hydro announcing a reduction in feedstock production?at?its Brazilian facility. Benchmark three-month "aluminum" on the London Metal Exchange rose 1.9% at 0850 GMT to $3,378.50 per metric ton, after reaching $3,382.5 as its highest level since June 22. Aluminum extended its gains for a seventh session in a row after Norsk Hydro announced that its Alunorte facility in Brazil had reduced alumina production to 50% of its capacity due to the reduction of natural gas supply. The plant's annual production capacity is 6.3 million tonnes of alumina. The aluminium price is up by 6% in August. It has risen above its 200-day average, which provides support now at $3,219. The next level of resistance is the '100-day moving averge at $3,396. "Aluminium was very resistant at $3,200." Metals traders said that once it had 'passed through the $3,200 mark it was only a?matter of time before it began to trend upwards. "Any bullish news headline acts as a catalyst, adding fuel to the fire." As negotiations between Iran and the United States?over the reopening of Strait of Hormuz and a peace agreement?reach an impasse, fears about the supply of oil from Gulf producers are gaining momentum. The U.S. - Iran war has caused a disruption in aluminium shipments originating from Middle East producers, who account for 9% global capacity. While?available aluminum stocks?in LME registered warehouses have fallen to 244,550 tonnes, this is the lowest level since April 2025. The majority of these metals are Russian, which most traders avoid. Other LME metals rose by 0.3%, to $14195. They had closed on Monday at a record high of $14160, as the outflows into the U.S. - ahead of possible U.S. tariffs - reduced availability. The spread between the cash and three-month price on the?LME The price of a ton remains at $145.5, indicating a tight supply. LME zinc decreased by 0.3%, to $3,723.50. Tin increased by 0.4%, to $55,750. Nickel and lead both increased by 0.1%, to $1,904 each, and respectively $16,925. Polina Devitt is reporting. Solomon Cefai contributed additional reporting. Mark Potter (Editing)
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Gas shortage forces Norsk Hydro to reduce alumina production by 50% at Alunorte.
Norsk Hydro said on Tuesday that its Alunorte refinery in Brazil had reduced output to 50% due to a decreased supply of natural gases, which helped send aluminium prices up to a 7-week high. Alunorte, located in Para state, is capable of producing?6.3 millions metric tons of aluminum per year. Around two tons of alumina (a refined substance from bauxite) are required to make one tonne of aluminium. After being informed by CELBA of the disruptions in gas availability, the?Norwegian firm said that it had taken contingency steps to reduce?the impact? on Alunorte's operations. The Norwegian company said that it had taken measures to mitigate the impact on Alunorte operations, including purchasing spot gas volumes and requesting direct access the Barcarena Liquefied Natural Gas receiving and regasification Terminal. It also temporarily reduced alumina production by 50%. Hydro stated that the financial impact of the third-quarter production reduction and the?purchase of gas at a price above the contract rate?could be between $75 million and $100 million. Alunorte's production will ramp up as soon as gas availability returns to normal, it said. The benchmark three-month aluminum?prices at the London Metal Exchange rose by as much as 2% on Tuesday to $3,382.50 per ton, the highest price since June 22. This was due to the dwindling inventory and disruption in?supply coming from war-torn?Middle East. (Reporting and editing by Elviira luoma, Keith Weir, and Tom Daly)
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Romania may shut down its nuclear reactor Thursday due to the fall in Danube levels
Nuclearelectrica, the state-owned producer of?nuclear energy?in Romania, could close its last reactor working on August 13, as the levels on the Danube continue to drop, the company said on Tuesday. This is despite attempts to divert cooling waters to the plant. Nuclearelectrica was forced to shut down a reactor due to the record-low river levels in late July. Two reactors are located in Cernavoda, on the Danube. They account for about a fifth of the power produced by the country. Romania has taken unprecedented steps to keep its only working reactor operating. These include detonating an obstruction of rocks out of the water and dredging riverbeds. They have also lowered barges filled with rock into the Danube in order to redirect the flow around the power station. Nuclearelectrica stated that the possibility of a controlled shut down (of the second reactor) depends on monitoring the weather forecasts and operational parameters for the next period. A director of the state water management agency stated that the levels on the Danube had dropped to a record low of 1,370 cubic meters of water per sec at its Romanian entrance point on Tuesday. The shutdown was "unavoidable", he added. Romania declared an energy emergency in August, and has asked households and businesses to reduce their consumption during evening peak hours. The government has prepared a system to cut off power in stages for industrial users with advance notice, if necessary. After a rise in the Danube's water level, Hungary began?to turn back on a nuclear turbine at Paks?on Monday. The water management agency stated that rains upstream will not affect Romania as it is the last country where the Danube enters the Black Sea. This summer, Europe was ravaged with record-breaking heat, and wildfires that caused havoc to the power, shipping, and health systems. (Reporting and editing by Emelia Sithole Matarise; Luiza Ilie)
Oil prices rise as a result of the US-Iran standoff
The oil prices increased on Tuesday as the United States and Iran negotiations over a deal to end the conflict and reopen the Strait of Hormuz reached a stalemate. Meanwhile, uncertainty about the outlook for global inflation dampened global stock markets. U.S. president Donald Trump responded on Monday with his own 'demands' to Tehran’s conditions for a deal. He called for Iran to compensate those who died in wars and attacks, as well as protests. This could complicate efforts to reopen this crucial waterway. Brent crude futures rose 5% over the past two days and last traded at $88 per barrel. This was their highest price since July 31, and almost 25% higher than early July's near four-month lows.
Tony Sycamore is a market analyst for IG.
He said, "This will be almost a war of attrition." "You can probably see the (oil market) sitting around $75 to $95 while we wait to find out who blinks first." The U.S. consumer price report for July will not include the latest rise in energy prices, but it can still be used to set expectations for September's Federal Reserve Meeting, where money markets indicate a 50% chance of an increase.
Jonas Goltermann is the chief markets economist of Capital Economics. He said: "We believe that risks are skewed in favor of a hot print. This would likely drive a recovery in rate expectations, and potentially, new worries about stagflation."
U.S. treasury yields increased in Europe in tandem with a modest decline in global bond prices. The yields on 2-year Treasury bonds were up by 1 basis point to 4.253%. Meanwhile, 10-year Treasury bond yields rose 2 bps to 4.72%. The latest news, which has seen yields and commodities prices move higher, has changed the mood from last week, when the doves seemed to be in control. Europe's STOXX 600 index drifted during early trading but was not far from last week's records highs. MSCI's All-World Index edged down by 0.1%. Nasdaq Futures rose by 0.1% while S&P500 futures were flat. On Monday, the benchmark indexes declined. Nvidia announced overnight that it has teamed up six major financial institutions, including BlackRock and Apollo, to create a?set of funding measures for AI infrastructure worth more than 500 billion dollars. The company did not provide much detail in terms of financial terms, commitments to invest, or how $500 billion would fit into current funding arrangements.
Sycamore continued, "A small piece of me wondered if this was how I felt when subprime mortgages became mainstream - an innovation that ultimately helped to trigger the GFC." Another sell-off of Nvidia bonds highlighted some of the investor concerns. The 2% bond maturing 2032, which was the last to yield 4.887% on Tradegate's platform, is up almost 7 basis points from Monday. Intel has raised $20 billion in a share offering, its first since 1971 when the chipmaker was listed. Intel shares in Europe increased by around 1%. The yen, among currencies, was once again in the spotlight. It weakened past 159 and was well off its high of last week of 155.20, after several suspected rounds, including a move by Japan and United States. The holiday season in Japan led to a thinner trading volume than usual. This is often seen as an indication of possible intervention, since smaller trades have a greater impact on prices. The Australian dollar fell 0.07%, or $0.7049, after the Reserve Bank of Australia held its cash rate at 4.35%, for a second consecutive meeting. However, it said that if necessary, they might raise their rate again to control inflation. Gold, which is up 8% this month so far, fell 0.6% on the day to $4,365 per ounce.
(source: Reuters)