Latest News
-
Kazakhstan freezes fuel and utility prices amid inflation
Kazakhstan's Government announced on Thursday that it would freeze the price of some diesel and petrol as well as suspend utility tariff increases until 2026. This is due to the double-digit inflation rate continuing to increase. In a Telegram statement, the government announced that price freezes for diesel and AI92 gasoline will remain in effect until inflation stabilizes. It also said it would increase funding for the domestic agriculture to help prevent any price increases on what it called "socially important" food products. The government also claimed that it would reduce the tax revenue collected by small businesses, and make affordable mortgages more available. Inflation rates in Kazakhstan, which is a mineral giant and produces around 2% the world's supply of oil, were 12.9% in September. This was significantly higher than those in Russia, Kazakhstan's neighbour and main trading partner, where the prices have risen since the start of the war in Ukraine. Kazakhstan's central banks raised rates last week to an unprecedented 18%. Since the invasion of Ukraine, inflation has also spiked in other Central Asian countries with economies that are closely tied to Russia. The price of LPG soared suddenly in January 2022, causing the worst unrest in Kazakhstan since 1991 when the 20-million population gained independence from the Soviet Union. The fuel price protests that year grew to widespread unrest and hundreds of deaths. Russian troops were deployed to restore order.
-
Gold reaches new records as Fed rate-cut betting drives gold to record highs
Gold reached a record-high for the fourth consecutive session on Thursday as investors flocked into the metal of safety due to brewing U.S. China trade tensions, and the U.S. Government shutdown. Bets on interest rates cuts also fueled the momentum. As of 09:10 am, spot gold was up by 0.8% to $4,242.65 an ounce. ET (1310 GMT), after bullion reached a record high earlier of $4,254.61. U.S. Gold Futures for December Delivery were up 1.3% to $4,256.70. Yellow metal is up over 60% in the past year, thanks to geopolitical tensions and aggressive bets on rate cuts, central bank purchases, dedollarisation, and strong ETF flows. The rate-cut scenario heading into 2026, as well as developments surrounding U.S. China will determine the trajectory of gold. "If no deal is made between the U.S. and China, the relationship will continue to deteriorate. That could be what gold needs to break the barrier of $5000/oz," said Zain Vwda. Analyst at MarketPulse. This week, investors have been focused on the U.S.-China Trade Spat. Washington criticised China's increased rare earth export controls on Wednesday as a danger to global supply chains. Traders have priced in a rate cut of 25 basis points by the U.S. Federal Reserve in October and a second in December with probabilities as high as 98% and 95%. Gold that does not yield is usually a good investment in an environment with low interest rates. Vawda stated that short-term gold pullbacks are likely to be temporary as bullish investors use dips to enter positions. HSBC increased its forecast for the average price of gold in 2025 to $3,355 per ounce, citing geopolitical tensions and economic uncertainty, as well as a weaker U.S. Dollar. The ongoing U.S. shutdown has also halted the release of scheduled economic data. A Treasury official warned that the loss in output could be as high as $15 billion per week. Silver spot fell by 0.2%, to $52.96 an ounce. It had hit a record high $53.60 per ounce on Tuesday. The rally in gold was mirrored and the tightness of the spot market supported this decline. Palladium rose 1.8%, to $1,564.00, while platinum was up 0.7% at $1,665.24. (Reporting and editing by Vijay Kishore in Bengaluru, Sherin Elizabethvarghese from Bengaluru)
-
HSBC increases average gold price forecasts 2025 and 26
HSBC raised its forecast for the average price of gold in 2025 to $3,355 from $3,215 because of safe-haven demand fueled by geopolitical tensions and economic uncertainty. In a note from October 15, the bank stated that "sentiment is bullish" as it expects rallies to continue into 2026, aided both by buying from the official sector and demand for gold among institutions as a diversifier. HSBC has also increased its forecast for the average 2026 gold price to $3.950 from $3.125. GOLD HITS A NEW RECORD HIGH HSBC reported that the demand for gold is increasing due to mounting fiscal deficits across major economies, including the U.S. Gold has been traditionally viewed as a safe haven during economic and geopolitical instabilities. Its value has increased by over 60% this year and reached a new record of $4,250.89. China accused the U.S. on Thursday of inciting panic over Beijing's controls on rare earths and said Treasury Sec. Scott Bessent made "grossly distortion" remarks about an important Chinese trade negotiator. The Chinese rejected a U.S. request to roll back curbs. HSBC stated that "central bank demand will likely remain high due to geopolitical risk and dollar diversification but lower than peak levels in 2022-23". HSBC stated that a lower rate cut than the Federal Reserve's current projections for this year or next could dampen the rally. Investors have priced in a rate cut of 25 basis points at the Fed meeting this month, and expect another in December. HSBC stated that the gradual decline in global inflation could also dampen jewelry purchases, which are driven by inflationary fears. The bank also maintained its average 2025 price forecasts of palladium and platinum at $1,100 and $1,215, respectively. Reporting by Noel John, Bengaluru. Editing by Mark Potter
-
Gold prices spike in India before festivals, causing a surge in gold smuggling
Government and industry officials said that gold smuggling in India had increased ahead of major festivals. This was due to the record high prices and supply shortages. Import taxes on gold have been reduced to 6%, down from 15% in the past year. Customs and Directorate of Revenue Intelligence officials (DRI), however, said that smuggling had increased in the last few weeks. Several attempts to smuggle were foiled at Indian airports. A bullion dealer in Chennai said that smugglers are now able to convert gold quickly and easily, thanks to the strong demand for festival gifts and limited supplies. This month, Indians will celebrate Dhanteras (Diwali) and Diwali (Dhanteras), festivals when purchasing gold is considered auspicious. These are also the busiest days to buy the precious metal. On Thursday, gold prices in India reached a record of 128,395 rupees for 10 grams. This marks a 67% increase so far this season. Smuggling gold at this price is lucrative for grey-market operators. They can make more money by avoiding the 6% import tax and a local sales tax of 3%. "The payoff is super tempting for them," said an unnamed senior bullion trader in Mumbai. The margin for smugglers has fallen to 630,000 rupees a kilogram after the import duties were reduced in July. The bullion dealer stated that investors are now chasing after gold, causing a shortage of supply and driving up premiums. A jeweller in Kolkata said that banks were unable to satisfy the demand for the stock and charged very high prices. This week, Indian dealers quoted a premium. The price of gold can be up to 25 dollars per ounce more than the official domestic prices. This is the highest since at least a decade. The government registered 3,005 gold-smuggling cases in the fiscal year 2024/25 that ended in March. They also seized 2.6 tons of this metal. (Reporting and editing by Alexander Smith; Rajendra Jadhav)
-
EU to provide support to countries affected by Carbon Border Levy
The European Union is offering development funding to countries that are affected by its carbon border tax, said the European Commission on Thursday. It was an attempt to calm the concerns of developing economies about the policy. Next year, the EU's Carbon Border Adjustment Mechanism (CBAM), which will be imposed on CO2 emissions from imported goods such as steel and cement, will begin to impose fees. Brazil, South Africa, and India have all criticised the measure, saying it penalizes developing economies. In a document published Thursday that outlines the EU's priority on climate and energy diplomacy the Commission stated it would support countries via "Global Europe", an international development programme funded by the EU budget of 200 billion euros ($233 billion). EU SAYS IT WILL NOT BACKTRACK BUT IS NOT DEAF TO CONCERNS The document stated that "Global Europe intends to maximize its contribution to the decarbonisation and adaption needs of developing countries while CBAM gradually becomes applicable." It said that "this would help ease concerns raised about EU legislation, as well as strengthening partnerships and supporting broader regulatory reforms." The EU Carbon Border Levy could be reduced by helping developing countries reduce emissions and switch to clean energy. Dan Jorgensen, EU energy commissioner, said that the bloc will not remove its climate laws to satisfy trading partners. He said that Brussels was more interested in investing in clean industries which could be beneficial to both sides, such as the production of renewable energy and hydrogen in Africa, which it wants to import. In an interview, Jorgensen said, "To the extent we can help these nations, we'll be very open, both in terms of looking at possible funding arrangements but also in terms of technical assistance." He added, "We are not going to go back on our green transition... But we are not deaf to the worries of partners." The EU document also outlined plans to engage businesses in the bloc's diplomacy on energy and to identify priority clean tech investments overseas, as Europe attempts counter China's dominance of manufacturing green technologies like batteries and solar panel.
-
CMC purchases Foley Products at $1.84 Billion in a wave of building products deals
Commercial Metals Company announced on Thursday that it would acquire the concrete supplier Foley Products Co. for $1.84 Billion in cash. Dealmaking is accelerating across the U.S. construction products sector as a result of a drive for scale and local supply chains. The Irving, Texas-based company said that it expected the Foley acquisition to have a positive impact on earnings and cash flows and deliver annual EBITDA synergies between $25 million and $30 million. Dealmaking has increased in the U.S. construction products industry as companies look to scale and local supply chain to offset tariffs. Demand is supported by new housing and repair and renovation. Last week, the roofing-materials firm TopBuild SPI bought rival SPI in exchange for $1 billion cash Earlier this year, Home Depot's unit acquired specialty-building-products distributor GMS for about $4.3 billion in June, while QXO clinched an $11 billion deal for Beacon Roofing Supply in March. CMC reported that it had beaten Wall Street's expectations for its fourth quarter adjusted profit. Earnings of $1.37 per common share compared to the analysts' expectation of $1.36, according data compiled by LSEG. In premarket trading, shares of the company rose 1%. Foley provides precast concrete and concrete pipes used in site infrastructure, such as utility connection, water supply and Stormwater Management. Newnan-based Georgia company operates 18 locations in nine states of the U.S. Southeast. It also has a presence throughout the Central and Western Regions. CMC was advised by Moelis & Company as its financial advisor and Akin, Gump as its legal counsel.
-
US rate cuts bets continue to drive gold's record-breaking run.
The gold price reached another record on Thursday as investors sought out the safe haven due to U.S. China trade tensions, the U.S. Government shutdown and prospects of rate cuts. As of 1208 GMT, spot gold was up by 0.8% to $4,242.38 an ounce. Bullion touched a new record high at $4,247.49 earlier, rising for the fifth consecutive session. U.S. Gold Futures for December Delivery were up 1.4% to $4,258.50. Gold prices, which are traditionally seen as a safe haven during periods of uncertainty, have risen by 60% in the past year. This week, investors have been focused on the trade dispute between the two world's largest economies. On Wednesday, U.S. officials criticized China's expansion of export controls on rare earths as a danger to global supply chains. Investors are turning more to gold because of renewed trade frictions, said Nitesh Sha, commodities strategist with WisdomTree. He added that the gold breakout is also indicative of investor uncertainty over U.S. policies. Shah said that there is a high probability the metal will remain above $4,200. The gold rally is driven by several factors including the expectation of interest rate reductions, political and economic uncertainties, central bank purchases, and inflows to gold exchange-traded fund. A Treasury official stated on Wednesday that the shutdown of the federal government, which has lasted for two weeks, could cost the U.S. economic system as much as 15 billion dollars a week due to lost production. On the monetary front, traders have priced in a 25-basis-point cut from the U.S. Federal Reserve for October, with another one in December. These are viewed as 98% and 85% chances, respectively. Gold that does not yield is usually more profitable in an environment with low interest rates. Aakash Doshi is the head of State Street Investment Management's gold metals strategy. Gold smuggling has also increased in India, the second largest buyer of precious metals in the world. This is because of record-high prices and shortages. Silver spot fell by 0.1%, to $53.00 an ounce. It had hit a record high $53.60 per ounce on Tuesday. The rally in gold was mirrored and the tightness of the spot market supported this decline. Palladium rose 1.7%, to $1,562.23, while platinum climbed 1.1%, to $1673.12. (Reporting and editing by Elaine Hardcastle, Ed Osmond and Anushree Mukerjee from Bengaluru)
-
CEO Daniel Klier leaves role at South Pole carbon consultancy
Two people with knowledge of the situation said that on Thursday, the head of South Pole, an carbon finance consultancy and project development company, left his position and was replaced with immediate effect by Nadia Kaddouri, current chief financial officer. Daniel Klier was appointed CEO of South Pole in May 2024. He had to lead a turnaround as a response to concerns regarding the Kariba Forestation Project in Zimbabwe, in which South Pole was involved. Klier did not respond to an immediate request for comment. It is unclear why he left the Swiss firm. Klier is expected to join the advisory board of the company, according to a source who spoke on the condition of anonymity. These sources are not authorized to comment publicly on this matter. 'COMPREHENSIVE TRANSFORMATION' South Pole stated in a September statement that the company had focused its efforts over the past two years on "a comprehensive transformation" of their carbon finance consultancy. A new advisory board was appointed and a review of the company's quality, compliance and risk protocols were conducted. The company is also backed by Lightrock, an impact investor. South Pole's involvement in the Kariba project REDD+, part of United Nations efforts for curbing carbon emissions by protecting forest, was criticised 2023. The media questioned if the project preserved as much of the forest as promised, and claimed that the communities had not benefited as much as expected. South Pole, the developer of carbon assets for the project, and the company responsible for the sale of credits generated on the market, terminated its relationship with Kariba in 2023. In a press release at the time, it stated that it only sold carbon credit from the project which were verified and fully valid by Verra. In November 2023, South Pole's Board appointed a new leadership team to improve governance and selection of projects. The board said that it was "determined" to learn from its experience working with the Kariba project in Zimbabwe. Verra said last month that a review found that more than 15 millions excess credits had been issued. The actual deforestation in the Kariba Project... was much lower than the initial estimated deforestation," the report said. Klier's LinkedIn profile states that he was the global head of sustainable financing at HSBC from 2017 to 2021, following a five year stint as group director of strategy. Before joining South Pole, Klier was the CEO of sustainability data company ESG Book. (Reporting and editing by Virginia Furness)
Tesla turns to Musk's little investor fans to back $56 billion payday
With significant Tesla shareholders appearing divided over whether to endorse Elon Musk's $56. billion pay bundle, the company also is searching for assistance. from retail financiers who make up an abnormally high portion. of the electric carmaker's ownership base.
Little financiers tend to prefer management, but they typically. do not bother to vote, specialists said.
The company's June 13 yearly conference is shaping up as a. referendum on Musk's leadership, following a Delaware court's. ruling striking down the substantial pay plan. The business has. asked financiers to vote to declare it and Musk stands to. control more than 20% of the business if he gets it. A 'no' vote. would be a rebuke with unknown repercussions.
Tesla also proposes reincorporating in Texas instead of. Delaware and re-electing 2 directors, consisting of Musk's. brother, Kimbal.
While there are a dozen items up for a vote, Tesla is. concentrated on the pay vote and the relocate to Texas in a continuous. outreach campaign to little investors that consists of a site,. engagement with online influencers, and factory trips for a couple of. of those who vote.
Big financiers have actually sent mixed signals. T. Rowe Rate. has stated the bundle showed strong positioning with. financier interests. But the California Public Worker'. Retirement System on the other hand has stated it will likely oppose. Musk's pay as not commensurate with Tesla's efficiency, and. Norway's sovereign wealth fund came out versus the pay bundle. on Saturday.
Although small investors have a range of opinions, specialists. in business vote campaigns state the size and CEO-friendly nature. of numerous private investors at Tesla make them an apparent. target.
The man winds up 10x-ing my investment and he's given. nothing? It does not appear ideal or fair, said Andrew Theyken. Bench, a lawyer in Allentown, Pennsylvania with fewer than 5,000. Tesla shares, who voted by proxy with management on all items at. the conference, consisting of Musk's pay.
In a post on his social networks platform X on Saturday Musk. composed: So far, roughly 90% of retail shareholders who have. voted have actually enacted favor of both resolutions, obviously. including the one on his pay.
Bruce Goldfarb, president of Okapi Partners, a proxy. solicitor not associated with this vote, stated 90% support from. retail financiers would be about normal considering that the category. generally favors management. But such investors normally do not. vote, presenting a difficulty for Tesla.
Retail shareholders are hugely apathetic even if they're. encouraging, Goldfarb stated.
Mom-and-pop investors only voted about 30% of their shares. in 2023, according to vote-processing business Broadridge,. compared to 80% for institutional financiers.
The theme of fairness to Musk is the heart of Tesla's. project. Chair Robyn Denholm explained the vote as being about. fairness, respect and the future of Tesla. She also alerted. Musk has actually limited time and a range of interests.
We want those ideas, that energy and that time to be at. Tesla, for the benefit of you, our owners. But that requires. mutual regard, she composed in a June 5 letter.
A Tesla agent declined to comment.
LEADING THE PACK
Data and research firm S&P Global Market Intelligence discovered. that since June 5, about 43% of Tesla's typical stock is held by. the public and other category of shareholders that includes. retail investors and others outside of the main classifications of. institutional investors and company insiders.
That is the most of any of the 15 largest companies in the. S&P 500.
Musk's own stake in the company is around 13%. Amongst top. outside financiers, Vanguard has 7.2% of the shares and BlackRock. has 5.9%, according to Tesla's proxy. Neither would. remark about their voting intentions.
GUT ASSESSMENT: 50% OPPORTUNITY
Both major proxy consultants, Institutional Investor. Solutions and Glass Lewis, have actually recommended financiers vote. against ratification of the pay plan, calling it extreme.
That's a bad indication for Tesla. Among Russell 3000 companies. from 2010 to 2020 just 66% of state on pay resolutions passed. when both proxy advisors advised votes against them,. compared to 99% when both supported the pay, said University. of Utah financing teacher Chong Shu.
Omar Qazi, an X.com user with 475,300 fans who posts. using the deal with @WholeMarsBlog and often gets public replies. from Musk on the platform, stated his gut assessment existed. is only a 50% opportunity that a bulk of Tesla investors back the. re-ratification of Musk's pay.
Many assistance Musk and see the importance of compensating. him but numerous are likewise distressed about a range of factors:. politics, slowing sales, stock cost etc, Qazi said by direct. message on X.
Shares at Tesla closed Friday at $177.48, well below the. $ 248.48 where they ended trading in 2023, as the company deals with. growing competition and concerns about its plans for brand-new. designs.
A DEAL'S A DEAL
Nevertheless Musk still delights in support online from. prominent users. In addition to Qazi these include Alexandra. Merz, who posts as @TeslaBoomerMama on X.com and has actually had a number of. posts reposted by Musk to call attention to voting.
Those posts urged non-U.S. banks and brokerages to enable. Telsa investors to vote, something the companies' systems did. not previously allow. Numerous subsequently did so including. Sweden's Nordnet.
I have actually been bought other companies before and I've never ever. seen the amount of effort by a casual neighborhood to go out. the vote like there is on this one, stated Troy Dillon, a retired. U.S. Air Force officer in Florida and Tesla investor.
As for the pay bundle, The offer was the deal, Dillon. said. He is electing it.
(source: Reuters)