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Stocks mostly decline after a solid U.S. job report
Treasury yields, the dollar and S&P?500 all rose on Friday as U.S.?job creation?accelerated and unemployment rate remained steady. Investors are looking forward to the consumer inflation report next week as a key factor in this determination. The nonfarm payrolls increased by 162,000 positions last month, following a 21,000-job increase that was upwardly revised in July. Economists surveyed by predicted an increase of '56,000 following a previous reported decline of 23,000 jobs in July. Last week, the yield on 10-year benchmark U.S. notes increased by 1.21 basis points to 4.774%. Just after the report, it was 4.792%. The yields on two-year bonds reached their highest level since January 2025. Bret Kenwell is a U.S. Investment Analyst at eToro, New York. The Fed will make its interest rate decision in mid-September, so the CPI report next week will be closely monitored. The short-term interest rate futures indicate a probability of 65% for an increase at the Fed meeting on September 15-16, up from 55% prior to the report. OIL PRICES DROP, DOLLAR UP Prices of oil have dropped from their recent highs. The renewed attacks in the U.S. - Iran war this week caused a spike in oil prices. This has added to concerns about rising costs. U.S. crude fell 1.6% to $89.87 per barrel and Brent dropped 1.3% to $94.26. The Dow Jones Industrial Average dropped 98.46 points or 0.19% to?53.587.55, the S&P 500 declined 6.06 points or 0.08% to 7,741.65 while the Nasdaq Composite rose by 17.02 points or 0.06% to 26,601.08. MSCI's global index of stocks rose by 1.02 points or 0.09% to 1,155.76. The pan-European STOXX 600 Index rose by 0.04%. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) was up by 0.2% for the day. The Japanese yen temporarily weakened by 0.41% to 156.45 dollars. Last time, the dollar was near flat against yen. Spot gold dropped 1.2% to $4.418.09 per ounce.
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US sanctions on Turkey's entities targeting Iran
The?U.S. The 'U.S. Treasury Department released new Iran-related sanction?on Friday. It targeted three?Turkey based entities. Golden Global Portfoy Yonetimi Anonim Sirketi is the entity targeted. Golden Global Varlik Kiralama Anonim Sirketi and Golden Global Yatirim Bankasi Anonim Sirketi are also included. The Treasury Department issued a license to allow the winding down of transactions. The Trump administration has been trying to put economic pressure on?Tehran for six months, since Washington's war against?Iran. This has led to a rise in energy prices worldwide. Treasury Secretary Scott Bessent has stated that Washington wants to bring Iran back to the table for negotiations. Last month, Bessent announced an "economic assault" on Iran's financial connections around the globe. Washington cut off the branches of Egyptian?lender Banque Misr in the United Arab Emirates? from U.S. Dollar transactions last week over their dealings to Iran. Bessent, in an interview with Sunday's? In an interview with?
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RPT-Major underground and tunnel rescue operations
Rescuers pulled two survivors out of a tunnel connected to a 'hydropower station' on Nepal’s Trishuli River, on Friday. This was nine days after a glacier collapse caused a torrential mud, rock and ice that killed over 1,300 and left more than 5,600 people missing. Here is a list with some of the major rescue operations. Rescuers drilled through rock, concrete, and earth to free 41 workers who were trapped in a collapsed Himalayan tunnel for 17 days. The tunnel was part of the Char-Dham highway, which connected four Hindu pilgrimage sites in northern India. After sudden monsoon rainfall blocked the exit, a group of 12 boys with their soccer coach went to explore the Tham Luang Cave Complex in Thailand. They became trapped deep within a flooded cave network. Divers located the group alive after a multi-day search. All thirteen were rescued safely. Rescue of 33 miners who were trapped underground for two months by an explosion at the San Jose mine in Chile’s Atacama desert. In October 2007, all 54 trapped miners at a gold mine in Western Australia by a fire were rescued. The fire broke out in a caterpillar underground truck at the Kanowna Belle Gold Mine. Sixteen miners were trapped in the Beaconsfield mine, located on Tasmania's southern Australian island. Fourteen miners escaped immediately, one died, and two were rescued after spending a couple of weeks?about one kilometre underground. In July 2002, nine trapped miners were rescued after 77 hours of underground work at the Quecreek Mine.
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Italy's deputy Prime Minister says energy and banks should assist with public finances
The deputy prime minister of Italy suggested that banks and energy companies be prepared to accelerate tax payments in order to boost the public finances, without an official tax increase. Antonio Tajani, a?also?Italy’s Foreign Minister, said that the additional support could help fund next year’s budget, as well as any other measures to shield consumers from high energy costs. Tajani told reporters at the annual TEHA business forum that any policy should be modeled after the agreement Italy reached with banks and insurance companies last year to advance taxes to the state. He said, "It's only fair to tax the profits of oil companies and that they lend a helping hand to Italians who are in a difficult situation." How can?they help? By putting taxes on them to make the markets shiver? ... "The winning strategy is that which the government has pursued with the banks and insurance companies," he continued. Tajani's Forza Italia has always opposed the League, a coalition partner, in its proposals to tax "windfall profits" of energy or financial firms. He also cited as a model an agreement Italy reached with large energy companies in recent weeks to advance tax payments in order to help the government fund a reduction in fuel excise duty. "Banks, insurers, and large oil firms all have a role to play in times of?need. He said that raiding banks was for bandits. "Agreed solutions are the best way to go." When we begin to work on the budget for next year, if there is an emergency we will talk to banks," Tajani said when asked if the measure from last year could be extended.
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Major underground and tunnel rescue operations
Rescuers pulled out two survivors on Friday from a tunnel connected to a hydropower plant on Nepal's Trishuli River, nine days after the glacier collapse that caused a torrent of ice and mud. Here is a list with some of the most important rescue operations. Rescuers in 2023, who used drills to remove debris such as rock, earth and concrete, rescued 41 workers trapped inside a collapsed Himalayan tunnel for 17 days. The tunnel was part of the Char Dham highway, which connected four Hindu pilgrimage locations in northern India. 2018 - A group of 12 boys, their soccer coach and the Tham Luang cave complex in Thailand were trapped after sudden monsoon rains blocked out the exit. Divers located the group alive after a multi-day search. They rescued all thirteen. In 2010, 33 miners who were trapped underground for two months by a collapse in the San Jose mine?in Chile's Atacama desert, were rescued. In October 2007, all 54 trapped miners at a goldmine in Western Australia were rescued after a fire. Fire broke out in a 'caterpillar truck that was working underground at the Kanowna Belle Gold Mine. Sixteen miners were trapped in the collapsed 'Beaconsfield Gold Mine' on Tasmania, a southern Australian island. Fourteen miners escaped immediately, one died, and two were rescued after spending a total of?two weeks?about one kilometre underground. In July 2002, nine miners were rescued after spending more than 77-hours underground in the Quecreek Mine of Pennsylvania.
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Turkey, AIIB sign cooperation deal, first focus on marine cleaning, minister says
Murat Kurum, the Environment Minister, announced on Friday that Turkey had signed a collaboration agreement with the Asian Infrastructure Investment Bank. The AIIB will help support environmental investments, urban infrastructure, and climate change initiatives. Kurum stated that the first phase of the agreement will focus on environmental projects within the Marmara Region through an investment package valued at around EUR400million ($465million). Kurum stated that "we aim to provide significant assistance for the cleaning up of the Marmara Sea?and our battle against sea snot by investing a package worth approximately EUR400 million. This investment will be primarily used for advanced biological wastewater-treatment facilities." He didn't say how much total investment could be, or what the next phases of the agreement would look like. In the past, Turkey faced a "plague of sea snot" in the Sea of Marmara. This was a thick, slimy organic layer known as marine muclage that threatened marine life and fishing. The inner Sea of Marmara connects the Black Sea via the 'Bosporus' to the Aegean Sea via the Dardanelles. It is located in the heart of Turkey, the region most industrialised. Kurum stated that increasing wastewater treatment capacity and expanding advanced 'biological treatment' facilities, as well as strengthening environmental infrastructure are among the most important efforts Turkey is making to combat pollution in the sea. Kurum and AIIB vice president?Ajay bhushan pandey signed a cooperation agreement at the Climate 'Finance Summit held in Istanbul ahead of the COP31 U.N. - climate conference in November. Pandey said that Turkey is the AIIB’s most popular investment destination.
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Waller calms the bond markets after Waller's Fed announcement. Traders are now preparing for US employment data.
The world's shares tipped higher on Friday ahead of U.S. employment data, while the bond market received some much-needed relief after a Federal Reserve official reduced expectations for rate hikes and drove down the dollar. The dollar's decline had run its course, as the normal pre-payrolls patterns?played themselves out. But it left the Japanese yen poised for a weekly increase of nearly 2,5% -- its highest since late July when Japan and the United States?joined forces. The yen has seen its best weekly rise since late July, when Japan and the?U.S. conducted a rare joint effort to stop a downward spiral in the Japanese currency. The main European stock exchanges spent their mornings going nowhere. Meanwhile, renewed increases in oil prices and gas prices across the region continued to boost bets on the European Central Bank raising its interest rates next Thursday. Nasdaq and S&P futures both rose by 0.4%. Traders prepare for the U.S. August payrolls report, which is due at 8:30 am ET/12:30 GMT. The consensus is for a gain of 56,000 positions after a shocking drop of 23,000 in the previous month. The unemployment rate will remain at 4.1%. The announcement comes after Federal Reserve governor Christopher Waller stated at an?NEXT Newsmaker's event on Thursday, that recent data showed some signs of deflation, and that if future reports confirmed that trend, then he would prefer to hold rates steady at the policy meeting this month. Money markets immediately reduced the chances of a Fed rate increase this month from 63% to 50%. This is a dramatic drop. These expectations surged as global bond yields reached multi-year highs this week, fueled by fears over persistent inflation, swelling debt, and geopolitical tensions. John Hardy is the head of global macro-strategy at Saxo Bank. He said that Waller's comments, that they finally see some disinflation, suggest that there was not much coordination within the FOMC, given what Kevin Warsh, (Fed Chair) said last week. The market has marked down the chances of a September move, but if the jobs data is a surprise, particularly on the downside, then we may see a lot more volatility. In Asia, MSCI’s broadest index of regional shares closed the day with a 0.8% gain and was little changed for the week. Japan's Nikkei rose 1.3% but fell 1.9% in the last week. The blue-chips in China gave up their early gains to end the week down by 0.1%, while South Korea's KOSPI, which is a tech-heavy index, rose 1.6%. The Korean won, KRW=KFTC> also hit a new 14-month high. U.S. JOBS DATA LOOMS Traders are preparing for the U.S. Payrolls report, ahead of the U.S. Inflation data that is expected to be closely watched next week due to the mixed signals from the Fed. The economic data released on Thursday showed that the U.S. service sector was gaining momentum last month, with prices paid reaching a record high. Fed's "Beige Book", a survey of economic activity, also indicated that it had increased in recent weeks. Treasuries rose after Waller's dovish remarks, with the short end leading the way, as the yield-curve bull steepened due to fading bets about imminent rate hikes. Waller said "recent data suggests we are finally experiencing some signs of deinflation" and that, if this continued, he was "willing to hold" rates. He also said that he thought underlying inflation was "doing better than the core figures suggest." The yield on two-year bonds remained at 4.33%, after dropping 5 basis points overnight. This is a further move away from the 20-month high of 4.41% reached Wednesday. The 10-year yields remained at 4.75% after dropping 3 basis points overnight, and the 30-year yields remained at 5.23% following a 2-basis point drop. Germany's 10-year Bund Yield climbed 0.5 points to 3.36% in Europe, marking the fourth consecutive weekly increase and largest since mid-July. WARNED OF INFLATION RISE Investors who hold longer-dated bonds are still wary of inflation risk despite the lack of progress made by the U.S. to end its war with Iran and reopening the Strait of Hormuz. Brent crude futures rose 7% to $95.52 per barrel this week, a six-week high. This week, European natural gas prices also rose 7% ( TFMBMc1>) to a record high of three years. Energy companies are growing increasingly concerned about entering winter with their stores at the lowest levels in more than a decade. Mark Dowding, Chief Investment Officer at RBC BlueBay Asset Management, said that the ECB would likely'remain on a hike path' if TTF gas futures pushed towards 100 over the coming weeks. After a 0.6% drop overnight, the dollar was trading at 99 cents against major counterparts. The dollar is expected to drop by 0.7% in the coming week. This helped the yen build on its gains as investors increased bets that Bank of Japan will raise rates this month. The dollar rose 0.3% last to 156.32yen after losing 1.8% overnight. Gold held steady at $4,477 per ounce on the commodity markets after a 2% increase overnight. The week was expected to be little changed.
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Sources say that Nigeria's Dangote plans on raising $1.5 billion through the IPO of its refinery.
Two people who have direct knowledge of this deal said that the Dangote Group plans to price its initial public offering (IPO) of its refinery unit in Nigeria at 525 naira per share ($0.40), a potential amount of $1.5 billion. One?of our sources and another person, who spoke on condition of anonymity, said that the company plans to sell 4.1 Billion shares. The terms are still confidential. The sources did not specify what percentage of the refinery they would be selling. One source said that the order book for this offer, which will be the largest in Africa, is scheduled to open September 14. Dangote Refinery has declined to comment. One source said that there will be a 15% green shoe option, which would allow the company to raise more money if the offer was oversubscribed. The Dangote Group, which owns the refinery in Lagos, is raising cash to fund the doubling of the facility's capacity, up to 1.4million barrels of oil per day. Aliko Dangote, a majority shareholder of the group, announced at a Botswana business meeting late 'on Thursday night that the IPO would open within the next 10-12 days.
Drought affects Pilsner Brewers' prized Czech Hops
After a brutal summer, the growers of aromatic 'Czech Saaz' hops that are used in Pilsner Lagers around the world are looking for new varieties and irrigation methods to boost their faltering harvests.
Jiri Smetana of the Hops Growers Union of the Czech Republic said that this year's rainfall was 60% lower than normal and temperatures of up to 40 degrees Celsius (104 Fahrenheit) were record highs, which damaged crops.
Smetana, at a hopyard in Steknik, near Zatec (whose German name is Saaz), said that this season had been extremely hot and dry.
He said that "we expect a decline in the yield of 25% to 30% compared with the long-term mean" for Saaz.
The crop is less potent and less bitter
Smetana stated that the average total harvest is 6,500 tons. This year, however, farmers will be "happy" if they get a 5.
Brewers had to 'use more' of the reduced output because it was less bitter and potent.
Smetana stated that the breweries would be able cope with the situation due to pre-stocking. However, a poor harvest in 2013 could cause serious problems.
Around 80% of Czech hops is exported. China is the largest market, followed by Japan.
The Saaz Shine, which is able to withstand dry climates, is a popular experimental variety. It is only being grown in a limited area, but growers hope it will take off.
This year was a real test for the?varieties. Smetana stated that we will be able to see how the drought resistance works, but for now, the plantation looks good.
The problem is that Saaz has become a tradition for many customers. Japanese and 'Chinese customers, who are the main export customers for Czech Hops, view new varieties with some suspicion."
According to the latest estimates, growers are building small reservoirs near plantations and placing their hopes in plans for a "major" new dam that will not be completed for 15 years.
Saaz will also be fine-tuned for temperature and drought resistance and genetic modification.
(source: Reuters)