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Oil prices rise, Ukraine peace talks and US interest rate decision are in the spotlight
The oil prices were stable on Tuesday, after falling 2% the previous session. Market participants remained focused on the upcoming decision by the U.S. Federal Reserve on interest rates and on peace talks that could end Russia's conflict in Ukraine. Brent crude futures were down?2 Cents, or 0.03 %, at $62.47 per barrel as of 0101 GMT. U.S. West Texas Intermediate Crude was trading at $58.84 - down 4 cents or 0.07%. The prices of both contracts dropped by over $1 after Iraq re-started production at Lukoil’s West Qurna 2 Oilfield, which is one of the largest in the world. After talks in London between the President Volodymyr Zelenskiy and leaders from France, Germany, and Britain Tim Waterer, chief market analyst at KCM Trade, said that oil is "keeping to a narrow trading range" until we know more about the outcome of the peace talks. If the talks fail, we expect oil prices to rise. However, if there is progress and there is the possibility of Russian energy supply returning to the global market, then the prices are expected to fall," he said. Sources familiar with the issue claim that the Group of Seven and the European Union have been in talks to replace the price cap on Russian crude oil exports by a complete maritime service ban, as a way to reduce Russia's oil revenues. The Federal Reserve policy decision is also due on Wednesday, and the markets have priced in a 87% chance of a rate cut by a quarter point. Analysts at BMI predict that the market will be oversupplied with energy in 2026, causing prices to remain under pressure. BMI said that, "although much depends on OPEC+'s response to lower prices during the first quarter of 2026," we should still see crude prices recovering through the rest of 2026 due to the lower production from U.S. shale activities and steady growth of consumption bringing markets closer into equilibrium. Ashitha Shivprasad, reporting from Bengaluru; and Thomas Derpinghaus.
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Investors eye Fed rate cut next week; US yields and dollar rise.
U.S. Treasury Yields and the Dollar gained on Monday, as investors prepared for this week's Federal Reserve Meeting, where investors are widely expecting a rate cut. Major stock indexes, however, were lower. Investors also assessed the potential impact of an earthquake with a magnitude of 7.6 that struck Japan's northeast. About 90,000 residents were ordered to evacuate and tsunami warnings which were later downgraded. The iShares MSCI Japan ETF fell by 0.6%. The dollar gained 0.3% versus the yen. The Fed's Wednesday announcement will be key this week. Some strategists believe that the Fed's policy group could be divided, despite the rate cut expected. Investors speculated that this meeting might be the most contentious of recent times. Since 2019, the Federal Open Market Committee had not seen three or more dissents in a single meeting. It has only happened nine times since 1990. Investors awaited signs of a "milder easing than expected". According to CME Group’s FedWatch Tool, 87.4% of investors expect the Fed to cut its policy rate 25 basis points. The markets had priced in a chance of less than 30% until recent comments by Fed officials sparked a change in expectations. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. He said that the market may be anticipating that the Fed will indicate that there could be a pause after this rate reduction in the first quarter 2026. JAPAN DELAYS RATE DECISION? After the news of the earthquake in Japan, the dollar rose against yen. Analysts said that depending on the extent of damage caused by the earthquake, the Bank of Japan may delay its expected rate increase next week. The U.S. Dollar Index was also higher. The next BOJ meeting on monetary policy is scheduled for December 18-19 2025. A policy statement and decision are expected to be made the second day. Cabinet Office announced on Monday that Japan's economy contracted more than originally estimated during the three-month period through September. This was mainly due to new data which lowered capital expenditure figures. However, economists say the change in numbers is not sufficient to influence the central bank. The news of the earthquake also boosted U.S. Treasury rates. The yield on U.S. Treasury notes benchmarked at 10 years. Last up 3.1 basis point at 4.17%, after reaching 4,192%. This was its highest level since the 26th of September. It was on course for a third consecutive session of gains. Wall Street saw all major S&P sectors lower, except for technology. Tim Ghriskey is a senior portfolio strategist with Ingalls and Snyder in New York. He said, "The market sold off in the second half November. Since then, we have seen a strong rally." "Today, we've taken a small dip but I do not see anything that will really derail the market." The Dow Jones Industrial Average dropped 215.67 points or 0.45% to 47,739.32. The S&P 500 declined 23.89 points or 0.35% to 6,846.51 while the Nasdaq Composite fell 32.22 or 0.14% to 23,545.90. The S&P 500 is still up 16% so far this year. Investors were interested in Paramount Skydance’s hostile bid for Warner Bros Discovery, as they hoped to outbid Netflix. Netflix shares are down 3.4%. MSCI's global index of stocks fell by 2.69 points or 0.27 percent to 1,008.04. The pan-European STOXX 600 fell by 0.07%. The central banks of?Canada and Australia will also be meeting this week, and are all expected to keep rates unchanged. Swiss National Bank would like to ease rates again to counter the strength of their franc but is already at zero percent and hesitant to go negative. Investors have given up on the Reserve Bank of Australia easing again and are even pricing in a rate increase for late 2026. Energy prices fell by $1.20, with U.S. crude oil settling at $58.88 per barrel after Iraq restored oil production in one of its fields, which accounts for 0.5% world oil supply. Brent futures dropped $1.26 and settled at $62.49 Caroline Valetkevitch reported from New York. Additional reporting was provided by Iain Withers and Wayne Cole, both in Sydney and London, and Alun. John, also in London. Joe Bavier, Aide Lewis and Nick Zieminski edited the story.
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Investors expect Fed rate cut next week; US yields and dollar rise after Japan earthquake
Investors weighed the possible impact of an earthquake in Japan on the U.S. Treasury yields and the Japanese yen, while the major stock indexes fell. The northeastern region of Japan was shook by a powerful earthquake measuring 7.6 on the Richter scale, prompting tsunami alerts and evacuation orders. The iShares MSCI Japan ETF fell 0.7%. Dollar was up 0.3% last against the yen. This week, the Federal Reserve will make an announcement on Wednesday. A rate cut is expected by many, but some analysts believe the Fed's Policy Committee could be divided. Investors speculated that this meeting might be the most contentious of recent times. Since 2019, the Federal Open Market Committee had not seen three or more dissenters at a single meeting. It has only happened nine times since 1990. Investors waited for signs of a milder cycle of easing than expected. According to CME Group’s FedWatch Tool, the expectation that the Fed would cut its policy rate 25 basis points is at 87.4%. The markets had priced in less than 30% of a chance until recent comments by Fed officials sparked a change in expectations. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. JAPAN DELAY IN RATE DECISION? After the news of the Japanese earthquake, the dollar increased against the yen. Analysts said that depending on the extent of damage caused by the earthquake, the Bank of Japan may delay its expected rate increase next week. The next BOJ monetary meeting is scheduled to take place on December 18-19, 2020, with the statement and policy decision expected the second day. The yield on benchmark U.S. Treasury notes. Last up 2.7 basis point at 4.166% after reaching 4.19% its highest level since 26 September, and on track to a third consecutive session of gains. All major S&P sectors except technology were down on Wall Street. The Dow Jones Industrial Average dropped 297.28, or 0.62 %, to 47 658.70. The S&P 500 declined 35.60, or 0.52 %, to 6,834.83 while the Nasdaq Composite lost 86.67, or 0.37 %, to 23,491.46. Paramount Skydance’s hostile bid for Warner Bros Discovery attracted some investor interest as it sought to outbid Netflix. Netflix shares fell 3.6%. MSCI's global index of stocks fell 3.67 points or 0.36% to 1,007.06. The pan-European STOXX 600 fell by 0.07%. Nikkei soared 90.07 points or 0.18% to 50.581.94. Beijing's diplomatic spat between Tokyo and Beijing worsened after a Chinese carrier-strike group conducted intense air operations in the vicinity of Japan at the weekend. All three central banks will meet this week, and are expected to maintain their current stance. Swiss National Bank would like to ease further to counter the strength of their franc but is already at zero percent and does not want to go below that. The markets have given up on the Reserve Bank of Australia easing again after a string of strong economic data. They even priced in a rate increase for late 2026. Energy U.S. crude fell $1.20, to settle at $58,88 per barrel, after Iraq restored its production at an oilfield that accounts for 0.5% world oil supply. Caroline Valetkevitch reported from New York. Additional reporting was provided by Iain Withers and Wayne Cole, both in Sydney and London, as well as Alun John, in London. Joe Bavier, Aide Lewis, and Nick Zieminski edited the story.
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Investors show caution as gold prices drop ahead of FOMC meeting
Gold prices fell slightly on Monday as investors were cautious in advance of the U.S. Federal Reserve’s two-day meeting to discuss policy and Chairman Jerome Powell’s remarks. Investors are looking for clues about future monetary policies. By 01:50 pm, spot gold had fallen 0.2% to $4,189.49 an ounce. ET (1850 GMT). U.S. Gold Futures for February Delivery settled 0.6% lower, at $4,217.7 an ounce. Peter Grant, senior metals analyst at Zaner Metals and vice president of the company, said that "the market is waiting on the Fed's decision and more policy guidance." Grant stated that gold remains attractive, as fundamentals are strong and central banks continue to buy. He added that a move towards $5,000 per ounce is achievable in the first quarter 2026. The markets are expecting a rate cut of 25 basis points, and traders see a 90% chance, up from 66% in November. Powell will hold a presser after the Fed's Open Market Committee concludes its meeting Wednesday. The FOMC will announce its final policy of the year. Gold that doesn't yield is more attractive when interest rates are lower. The leaders of France and Germany, as well as the British Prime Minister, showed their support in London for Ukrainian President Volodymyr Zelenskiy, at what they called a "crucial moment" for Kyiv. This was due to U.S. demands that Kyiv agree a peace agreement with Russia. Gold is a safe haven asset that tends to perform well in times of economic and geopolitical instability. Morgan Stanley believes that gold will continue to rise, due to a declining U.S. Dollar, the strong ETF purchases, central bank purchases and demand for safe havens. Silver fell 0.5%, to 57.98 dollars per ounce after reaching a record-high of $59.32 an ounce on Friday. Jim Wyckoff said that silver is normally a close follower to gold. However, in the last few weeks, the price of silver has outpaced gold. He added that the prices would rise above $60 per ounce, and might even reach $70 by the end of the year. Palladium rose 0.2% to 1,460.75, while platinum fell by 0.1%. (Reporting by Sarah Qureshi in Bengaluru; Additional reporting by Arunima Kumar; Editing by Joe Bavier, Shailesh Kuber and Krishna Chandra Eluri)
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Investors eye Fed rate reduction this week; US yields and dollar increase after Japan earthquake
Investors weighed the possible impact of an earthquake in Japan on the U.S. Treasury yields and the Japanese yen, while the major stock indexes dipped slightly. The northeastern region of Japan was shook by a powerful earthquake measuring 7.6 on the Richter scale, prompting tsunami alerts and evacuation orders. The iShares MSCI Japan ETF fell 0.7%. Dollar was up 0.4% last against yen. This week, the Federal Reserve will make an announcement on Wednesday. A rate cut is expected by many, but some analysts believe the Fed's Policy Committee could be divided. Investors speculated that this meeting might be the most contentious of recent times. Since 2019, the Federal Open Market Committee had not seen three or more dissenters at a single meeting. It has only happened nine times since 1990. Investors awaited signs of a milder cycle of easing than expected. According to CME Group’s FedWatch Tool, the expectation that the Fed would cut its policy rate 25 basis points is at 87.4%. The markets were only pricing in a 30 percent chance of a rate cut, until recent comments by Fed officials sparked a change in expectations. The market may be expecting the Fed to indicate that there will be a pause after this rate reduction in the first quarter 2026. However, I do not subscribe to that," Peter Cardillo said, chief market analyst at Spartan Capital Securities, New York. JAPAN DELAY IN RATE DECISION? After the news of the Japanese earthquake, the dollar increased against the yen. Analysts said that depending on the extent of damage caused by the earthquake, the Bank of Japan may delay its expected rate increase next week. The next BOJ monetary meeting is scheduled to take place on December 18-19, 2020, with the statement and policy decision expected the second day. The yield on benchmark U.S. Treasury notes. The rate rose by 4.9 basis points, to 4.188%. It had previously reached 4.19%. This was its highest level since 26 September. The Dow Jones Industrial Average dropped 159.43, or 0.33 percent, to 47.796.26. The S&P 500 declined 21.37, or 0.30 percent, to 6,849.53, and the Nasdaq Composite lost 40.44, or 0.17% to 23,537.69. The MSCI index of global stocks fell 2.64 points or 0.26% to 1,008.09. The pan-European STOXX 600 fell by 0.11%. Nikkei soared 90.07 points or 0.18% to 50.581.94. Beijing's diplomatic spat between Tokyo and Beijing worsened after a Chinese carrier-strike group conducted intense air operations in the vicinity of Japan at the weekend. All three central banks will meet this week, and are expected to maintain their current stance. Swiss National Bank would like to ease further to counter the strength of their franc but is already at zero percent and does not want to go below that. The markets have given up on the Reserve Bank of Australia easing again after a string of strong economic data. They even priced in a rate increase for late 2026. Energy prices fell by 1.47% to $62.81 per barrel for U.S. crude and 1.53% for Brent. Caroline Valetkevitch reported from New York. Additional reporting was provided by Iain Withers and Wayne Cole, both in Sydney and London, and Alun Johnson in London. Joe Bavier and Aiden Lewis edited the story.
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German Foreign Minister in China urges to end supply chain uncertainty
German Foreign Minister Johann Wadephul called on Monday to end the uncertainty surrounding vital Chinese semiconductors and rare Earths deliveries to European manufacturers. Wadephul’s first trip to China took place at a time of turmoil for the European industry. The dependence on Chinese suppliers, particularly in strategic chips and rare Earths, has been exposed by Beijing’s export restrictions as global trade tensions have escalated. Wadephul stated that "in all of these fields there was uncertainty and this needs to be removed." Hildegard Müller, the head of Germany's VDA automobile industry association, was part of a small delegation that accompanied Wadephul in China. Wadephul was forced to Postponement A planned visit last week was cancelled after Beijing only agreed to one of his office's requests. He said that the talks were open and intensive, and that his trip would pave the way for a visit from Chancellor Friedrich Merz in early 2013. He said that "quite some work" is still required to convince Beijing to grant new licences for rare earths to German firms. This indicates that German companies were not among the first batch of licenses announced last Thursday. The U.S.-China Trade War has caused months of disruptions since April when China introduced export controls on minerals that are used in autos, consumer electronics, and defence. Beijing also placed restrictions on certain semiconductors used by the automotive industry following the Dutch government’s decision to ban them. seize control Nexperia, a Chinese-owned chipmaker. China's Minister for Commerce Wang Wentao China said it "valued German concerns" on issues such as export controls and chip but that the Dutch government's "most urgent task" is to stop "improper administration interference and stabilize semiconductor supply chain". The growing surplus of China's trade, as described by French President Emmanuel Macron during his visit to China last week, had already strained relations between Europe and China. Unsustainable TAIWAN Wadephul also met with the Chinese Foreign Minister during his visit. Wang Yi He reiterated China's position regarding Taiwan, and stated that its "One China policy" was a key political foundation in relations. Taiwan's government denies that China considers democratically-governed Taiwan to be its territory. It also rejects the "One China" principle, which states that both sides of Taiwan Strait are part of one country. Wadephul, according to the German Foreign Ministry, will discuss European security concerns, including Russia's invasion in Ukraine, in his meeting Wang. However, there is no indication that China has changed its position. According to a foreign ministry statement, Wang stated that "China will continue to play an active role in promoting peace." Berlin tried to strike a balance between imposing a tougher stance on Beijing in relation to trade disputes and geopolitical conflict, as per European partners, but also trying to maintain its relationship with the top trading partner. The German government established a committee to advise the parliament on "security relevant trade relations" with China. This was part of an effort to reduce Germany's reliance on China for key materials as well as customers of its industrial exports. (Reporting and writing by Alexander Ratz of Beijing Newsroom, Sarah Marsh, James Mackenzie, and Christoph Steitz Additional reporting by Toby Chopra and Gareth Jones; Editing and rewriting by Toby Chopra and Andrew Heavens.
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Investors show caution as gold prices drop ahead of FOMC meeting
Gold prices fell slightly on Monday, as investors were cautious in advance of the U.S. Federal Reserve’s two-day meeting to discuss policy and Chairman Jerome Powell’s remarks on future monetary policies. By 11:25 am, spot gold had fallen by 0.1% to $4,191.44 an ounce. ET (16:25 GMT). U.S. Gold Futures for February Delivery fell 0.5% to $4.220.70 an ounce. Peter Grant, senior metals analyst at Zaner Metals and vice president of the company, said that "the market is awaiting Fed policy guidance and a decision by the Fed." Grant stated that gold remains attractive, as fundamentals are strong and central banks continue to buy. He added that a move towards $5,000 per ounce is achievable in the first quarter 2026. The markets are expecting a rate cut of 25 basis points, with 90% probability. This is up from 66% in November. Powell will hold a presser after the Fed's Open Market Committee concludes its meeting Wednesday. The FOMC will announce its final policy of the year. Gold that doesn't yield is more attractive when interest rates are lower. The leaders of France and Germany, as well as the British Prime Minister, showed their support in London for Ukrainian President Volodymyr Zelenskiy, at what they called a "crucial moment" for Kyiv. This was due to U.S. demands that Kyiv agree to a proposed deal for peace with Russia. Gold is a safe haven asset that tends to perform well in times of economic and geopolitical instability. Morgan Stanley believes that gold will continue to rise, due to a declining U.S. Dollar, the strong ETF purchases, central bank purchases and demand for safe havens. Silver fell 0.6%, to $57.95 an ounce after reaching a record-high of $59.32 per ounce on Friday. Jim Wyckoff said that silver is normally a close follower to gold. However, in the last few weeks, the price of silver has been leading the gold market. He added that the prices would rise above $60 per ounce, and might even reach $70 by the end of the year. Palladium rose 0.3%, to $1,461.60, while platinum was down 0.1%. (Reporting and editing by Joe Bavier, Shalesh Kuber and Arunima K. in Bengaluru)
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Hollywood's Golden Globe nominees are led by 'One Battle After Another.
The dark comedy "One Battle After Another", starring Leonardo DiCaprio, received nine Golden Globe nominations in a row on Monday. This puts the thriller at the top of the list for Hollywood's race to the Academy Awards. DiCaprio stars in the movie directed by Paul Thomas Anderson as a revolutionary who takes action when his daughter is threatened. Warner Bros' film will be competing in the category of best movie musical, or comedy against other films such as "Bugonia" and "Marty Supreme". Norwegian family drama "Sentimental Value", which won eight nominations in total, was just one ahead of the supernatural horror film "Sinners", with seven. Both films were nominated in the category of best movie drama, alongside Guillermo del Toro’s version of "Frankenstein", and "Hamnet," which tells a story about William Shakespeare's family. DiCaprio's "One Battle" co stars Benicio del Toro, Sean Penn and Chase Infiniti were among the nominees for acting. Adam Sandler and George Clooney received nominations for the film "Jay Kelly", as did Dwayne Johnson and Jessie Buckley. Ariana Grande, Cynthia Erivo and others were nominated for their roles in the Universal Pictures "The Wizard of Oz: The Prequel" sequel "Wicked: For Good." However, the second half of the Universal Pictures "The Wizard of Oz: The Prequel" failed to win any awards either in the musical or comedic categories. The Globes is one of the first Hollywood award ceremonies that precedes the Oscars in March. The Globes will be broadcast on Jan. 11, 2019. Globes voters have nominated a number of podcasts in a new category. These include "Armchair Expert With Dax Shepard", "Call Her Daddy", "Good Hang with Amy Poehler", "The Mel Robbins' Podcast", "Smartless", and National Public Radio’s "Up First". Netflix's limited series "Adolescence", about a 13 year old accused of murder, was nominated for six awards in the TV categories. Netflix is the pioneer of streaming Warner Bros Discovery is attempting to reinvent Hollywood by buying TV, film, and streaming assets. The network dominated the television category with 22 nominations. The independent distributor Neon (the studio behind "Sentimental Value," It Was Just an Accident," and "The Secret Agent") received the most nominations for films with 21. More than 300 entertainment journalists around the globe choose the Globe winners, as opposed to the 9,000 Oscar voters. In recent years, the Globes voting panel was expanded and reforms were implemented after critics criticized for ethical lapses or a lack diversity. Nikki Glaser, a comedian and actress from Los Angeles, will host the Globes for a second consecutive time. The show will air live on CBS, and be streamed by Paramount+. (Reporting and editing by Bernadette B. Baum, Nick Zieminski, and Lisa Richwine)
Mondelez defeats greenwashing lawsuit over 'climate neutral' Clif Bar claim
A federal judge dismissed an attempted class action lawsuit that accused Mondelez International, of misleading consumers into paying more for Clif bars labeled as "climate-neutral certified."
U.S. district judge Manish Shah found that the labels of Clif Kid Zbar products and Zbar Protein that showed a certification by Change Climate Project (a nonprofit that assists companies in reducing emissions) were not wrong.
Shah dismissed the case with prejudice, which means it cannot be brought back.
Cynthia Salguero, a plaintiff from Chicago, accused Mondelez, a Chicago-based company, of "greenwashing," or exaggerating a product's environmental impact, by labeling Zbars "climate neutral."
She stated that the Zbars manufacturing process emits 54,000 tonnes of carbon dioxide per year, which is the equivalent of 12,596 gasoline powered cars. This causes a higher concentration in greenhouse gases, and contributes to climate change.
The judge ruled that Mondelez had not advertised that Zbars are climate neutral. Only that they have been certified as such.
Shah wrote, "This is an important distinction." Mondelez's inclusion of a true statement .... on its packaging is not deceptive. Salguero’s complaint misstated the promise Mondelez made to potential customers.
Salguero's lawyers and Mondelez did not respond immediately to comments.
Salguero is a resident from Anaheim in California. He had requested unspecified damages due to Mondelez's alleged false statements and violation of California consumer protection laws.
Salguero V. Mondelez International Inc., U.S. District Court Northern District of Illinois No. 25-02139. Reporting by Jonathan Stempel, New York; editing by Lisa Shumaker
(source: Reuters)