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Source: Turkey will buy fighter jets from abroad until it has its own fighter planes ready.
A Turkish Defence Ministry official said that Turkey will buy necessary defence systems until its own fighter jet KAAN can be delivered. Reports on Wednesday said that Ankara has proposed ways to acquire advanced fighter jets to its European and American allies, amid discussions to purchase 40 Eurofighter Typhoons and U.S. F-16s or F-35s. This is happening as President Tayyip Erdoan makes a regional trip to Kuwait, Qatar, and Oman. According to a person with knowledge of the situation, under the deal that Britain is close to signing with Turkey on Typhoons the country would receive 12 aircraft, even if they were used, immediately from Qatar and Oman, in order for it meet its immediate requirements. When asked about the reports surrounding Erdogan's visit, the source stated that work on the Typhoon jets continues and the process is expected to be completed in a "suitable time." The source said at a briefing held in Ankara that until the domestic and national fighter plane KAAN is delivered, systems needed to fulfill the tasks assigned to Turkish Armed Forces will be purchased from other countries, primarily allies. (Reporting and editing by Jonathan Spicer; Tuvan Gumrukcu)
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Stocks surge on positive earnings; sanctions against Russia boost oil
The global stock market got a boost Thursday thanks to a series of positive earnings reports that helped offset some of the gloom in Wall Street due to a lacklustre performance by tech megacaps. Oil prices also rose following U.S. sanction against Russia. After the U.S. placed sanctions on Rosneft, and Lukoil, two major Russian oil companies over the Ukraine conflict. The STOXX 600 index rose 0.3% for the day, as positive earnings helped to boost the domestic indexes. The MSCI All-World Index, however, has slipped into the negative zone, and is on its way to its third consecutive day of decline. Chinese stocks dropped as much as 1,1% after sources reported that the White House was considering a plan aimed at curbing a range of software-powered products exported to China as retaliation against Beijing's recent round of restrictions on rare earth exports. Investors are on the defensive as Trump's Asia trip (next Monday) is causing geopolitical tensions, according to Charu Chanana of Saxo Bank, Singapore. The talk about U.S. software import curbs to China is hitting tech sentiment where it hurts. And renewed sanctions against Russia are a reminder of geopolitical risk that's not going away. Positive Earnings Surprises As earnings season begins, global equity markets are beginning to ease off their record highs. Although there have been some disappointing results or outlooks for megacaps, the majority of companies have so far surpassed analysts' expectations. Futures for the S&P 500, Nasdaq and Dow Jones were up between 0.1-0.2%. Tesla shares fell around 4% on Thursday morning after the company missed profit expectations despite a record third quarter revenue. There was still plenty of tech to be excited about. Shares of IonQ Computing, Rigetti Computing, and D-Wave Quantum jumped more than 20% after a report in the Wall Street Journal stating that the U.S. Government is in negotiations with several quantum-computing firms to exchange stakes for federal funding. After U.S. president Donald Trump imposed sanctions on Ukraine for the first time during his second term, oil rose by 3% to $64.68 per barrel. On the same day, EU member states approved a 19th set of sanctions against Moscow which included a ban on Russian imports of liquefied gas. Kyle Rodda is a senior analyst at Capital.com, in Melbourne. "Most Asian countries are net energy consumers, which is just a way to slow down growth and drive inflation." Reliance Industries, India's largest importer of Russian oil, plans to drastically reduce its imports in response to EU and U.S. sanction. Other Indian refiners are also expected to make significant reductions. DO NOT UNDERESTIMATE THE MAGIC OF RATE CUTS Investors' firm belief that the Federal Reserve will soon be on a rate-cutting frenzy helps to ease some of the anxiety over geopolitical tensions and trade conflicts. The markets show that traders expect U.S. interest rates to fall from 4% at the moment to 3% in June. "Never underestimate a Fed which cuts rates, and also the magic word: ending QT", IG Chief Market Analyst Chris Beauchamp, referring the central bank's programme of quantitative tightening, in which it reduces its holdings of Government Bonds to tighten up credit conditions. The dollar index which compares the U.S. dollar to six other currencies, rose 0.1% last week. It has been steadily rising since August when it hit a three-and-a half year low. Investors are more confident that the Fed will protect the economy. Gold, on its way to its largest weekly decline since May, rose 0.4% per day, reaching $4,110 for an ounce. Overnight, the price briefly approached $4,000 as investors took profits in anticipation of U.S. Inflation data this week.
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Shanghai copper prices surge on expectations of a bullish five-year plan in China
Shanghai copper recorded its biggest intraday gain for two weeks on Friday, thanks to bullish expectations about China's 15th five-year plans. This helped the market shrug off concerns over renewed tensions between the United States, China, and other countries. The Shanghai Futures Exchange's most active copper contract closed the daytime session up by 1.27%, trading at 86070 yuan per metric tonne, the largest gain in one single session since the 9th of October, when it reached a record high. The benchmark copper for three months also increased, rising 0.26% and trading at $10,691 Yuan per ton. Market attention is focused on the ongoing Fourth Plenum of the ruling Communist Party, which will approve a proposal for the 15th five-year plan outlining the goals of economic and social growth. The meeting will conclude on Thursday. Analysts and observers expect that these goals will focus on consumption, industrial upgrading and technological advancements. According to National Bureau of Statistics data released on Wednesday, China's output of copper in September fell 2.7% from month to month, despite an increase of 10% year over year. The decline month-over-month was in line the market expectations. Traders expect further declines in October. Copper's gains shrugged off renewed trade tensions following reports Washington may bar exports of items made using U.S.-made software to China in response to China’s new rare Earth curbs. Sources say that the plan could not go ahead. Details are unclear. Lead closed 2.68 % higher at 17,615 Yuan per ton, atop the SHFE's base metals. Heavy metals surged up to 17,760 Yuan in the early part of this session. This was a new seven-month record since late March. According to the Chinese information service Shanghai Metals Market, the surge was caused by Hebei Province in Northern China restricting trucks with high emissions from entering factories and delaying lead delivery. Traders said that the move would reduce regional supplies of heavy metal. Nickel grew by 0.19% and tin by 0.10%. $1 = 7.1230 Chinese yuan renminbi $1 = 7.1230 Chinese Yuan Renminbi (Reporting and editing by Dylan Duan, Lewis Jackson)
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Mixed earnings in the Gulf as investors are disappointed
Early Thursday morning, the Gulf stock markets were mixed as investors disappointed by corporate earnings and oil prices rose. Dubai's main stock index rose 0.2%. This was aided by the 0.7% increase in Emaar Properties, a blue-chip developer. ENBD, Dubai’s largest lender by assets reported a 23 percent increase in its third-quarter net income to 6.4 billion Dirhams ($1.74 billion), exceeding analysts' expectations by 5.54 billion Dirhams. Separately classifieds company Dubizzle Group announced on Wednesday that it had delayed its IPO at the Dubai Financial Market. Saudi Arabia's benchmark stock index fell 0.2%. Oil giant Saudi Aramco lost 1% after a 3.8% jump the day before. The crude oil prices increased by more than 3% in the last session as India buyers started to review their Russian oil purchases following the U.S. sanctions against major suppliers Rosneft & Lukoil for the Ukraine War. Electrical Industries Company grew by 4.2% following a dramatic increase in net profit for the quarter. Abu Dhabi's index fell 0.2% due to a decline of 3.1% in Abu Dhabi Islamic Bank, despite the bank reporting an increase in its third-quarter profits. Industries Qatar, a petrochemical manufacturer, rose 0.8%.
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The palm oil industry in Indonesia is gripped by fear as the military seizes plantations
In late June, Indonesian soldiers wearing fatigues entered a palm oil plantation in Borneo and displayed a sign declaring that the estate was under government control. The Melati Hanjalipan Plantation is a perfect example of a military-backed takeover which has shocked the 16 million-strong workforce and the world's largest palm oil producer. Agrinas Palma Nusantara is the new state-owned palm oil firm that has a land area of 9.1 million acres. Nearly half was transferred to it, making it the largest palm oil company in terms of size. This crackdown, ordered by the President Prabowo Subianto, is the largest structural change to Indonesia's palm oil industry. It has put a total 5 million hectares of land under military surveillance. This is approximately 30% of Indonesia's palm oil land and is larger than the Netherlands. Agrinas could be given the territory, but industry experts claim that they are not equipped to manage it. Agrinas and the president's office did not respond when asked for comments. Prabowo, who has been in power since October 2024, told his cabinet that he was determined to eliminate corruption cases that could not be investigated. COMPANIES UNDER SIGE Former special forces commander Prabowo has expanded the role of the military in civil affairs, reigniting fears that Indonesia will return to its authoritarian Suharto era. He appointed retired generals to Agrinas board, and created a taskforce of soldiers, police, and prosecutors, which will target plantations that operate in areas designated as forests, according to a presidential decree from January and the company website. Questions about the seizures were not answered by the task force, the Indonesian defence ministry or the military. In interviews with 12 company executives, growers in Indonesia, and five industry observers, including the most respected analysts of the sector, there was widespread concern about the future of their operations and the impact the crackdown would have on the global supply. Sources at three of Indonesia’s largest palm oil producers have confirmed that they have reduced their fertiliser usage and regular upkeep of areas at risk of takingover. This could affect future yields. Agrinas was formed by Agrinas, a company that has been seized of assets. The executives have requested anonymity out of fear of government reprisals. What can a business do if the government uses military or police? Who do we protest to? "Do you think we'll dare?" One executive replied: One executive said. Eddy Martono, chairman of the industry group GAPKI, said that the "uncertainty" could cause a drop in production as early as this year. 'KING OF THE THIEVES Melati Hanjalipan is two hours away from Sampit, through remote terrain with poor mobile reception and dust clouds following passing trucks. Sabarani, the cooperative's head, said that under state control there is a bleak future for this 106-hectare plantation, as monthly fruit bunches production has already dropped to 23 metric tonnes from an average of 80-100 tons. He said that their caretaker partner did not want to maintain the plot because of its legal dispute. Why is the state turning into the kings of thieves? He asked. Sabarani admitted to managing the plot, which was cleared by a Dutch timber company for 20 years without any proper documents. The cooperative had an expired local government permit, but when the central government reclassified it as forest they did not secure a Forest Area Utilisation Permit. This is similar to the experience of smallholders, who began planting on ancestral land before they were told that they were invading forests. An association that represents them reported that seizures have also affected tens and thousands of small plantations operated by transmigrant farm workers resettled in the country under former strongman leader Suharto. Sabarani stated, "We do not want to join Agrinas if we aren't legal." "We do not want to be used to work for Agrinas but be illegal," Sabarani said. MILITARY RUN PLANTATIONS Prabowo believes that the military-run plantations are essential for achieving food and energy independence within five years. Agrinas has been tasked to achieve his ambition of producing a diesel made entirely of palm oil, and controlling at minimum 30% of the domestic market for cooking oils. Agrinas, a newly formed company, was given the palm brief by Prabowo in March. It had no prior experience. The lawyer for the company showed pictures and videos of armed troops arriving at Duta Palma Group plantations, which were the subject of a money laundering case. Agrinas was given the lands. Sutomo stated that it plans to manage three million hectares by 2029. In September, he said, "My job used be to run around and go undercover. But now I'm told to take care palm oil." "This is an honor, a mandate even though I know nothing." INDUSTRY’S BIGGEST NAME The task force has focused its attention on some of the biggest names in the industry. The forestry ministry listed subsidiaries of Singapore-based Wilmar as well as SD Guthrie and Sinar Mas Group. Wilmar reported that despite challenges, the company had seen a 5% rise in production of fresh fruit bunches during the first half. However, full-year results are dependent on "resolutions to various issues" between Indonesian authorities. The company said it had engaged with Agrinas in a few plantations, and supported the regulation of illegal plants. Cargill stated that it was aware of the ongoing reviews and is in a constructive dialogue with authorities. SD Guthrie declined to comment on requests, but said in August that 3% of their planted area had been affected. First Resources and Musim Mas declined comment. Golden Agri, parent company of Sinar Mas did not respond. COMPLEX LEGAL MAZ Seizures bring to light decades of murky legality in land. Deforestation, unclear rights to land, changing rules, and inconsistent enforcement have plagued Indonesia's palm-oil sector since the 1990s boom. Three senior executives say many growers have documents relating to Jakarta disputes, and are faced with opaque processes for regularising permits. Investors are increasingly concerned about companies that have been certified as sustainable. This could have a long-term impact on production, especially since growth has already slowed down due to the ageing of trees and the moratorium on new permits for primary forests. Globally, a significant production shortfall could have repercussions on the global edible oil market. The markets are already constrained as Jakarta converts more palm into biodiesel. Sjafrie Sjamsoeddin is the leader of the task force and has stated that Agrinas must be prepared to ensure production does not decrease, but should actually increase. Top analysts at an industry event in Mumbai warned that seizures will continue to decline if they continue. Thomas Mielke, a forecaster at Oil World, said: "We assume Indonesia's production to rise by 0.7 millions tons next year. However, I wouldn't be surprised if it turns out that the increase is much smaller because investments are being cut." Dorab Mistry, an industry analyst, echoed these concerns: "The threat to nationalisation leads immediately to lower yields."
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The Russian-controlled Zaporizhzhia Nuclear Plant says it has power again after a 30-day interruption
The Zaporizhzhia Nuclear Power Station in Ukraine has been reconnected to external power by engineers who repaired a damaged line of high voltage, the station's Russian-installed managers announced on Thursday. In the first weeks after the Ukraine war, Russian troops seized the plant, Europe's biggest with six reactors. The plant currently does not produce electricity but it needs external power in order to cool down the nuclear fuel, avoiding the possibility of a meltdown. The International Atomic Energy Agency, U.N. nuclear watchdog, has prioritized the safety of this site, given the nearby fighting. Russia and Ukraine have often accused each other and blamed the latest power cut on the other for shelling. The plant was reliant on diesel backup generators for the last 30 days. The IAEA published a statement on X that stated, "Returning power is a key step in nuclear safety." In a press release, the Russian management expressed its gratitude to the IAEA for assisting in arranging a local ceasefire that allowed the repairs to be completed. It expressed its hope that the ceasefire will continue, so that repairs can be made to a second electricity line which has been down since May 7. Mark Trevelyan, Alexanra Hudson and Mark Trevelyan contributed to the report.
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Steel data is upbeat, and iron ore has gained on China's stimulus hopes
The iron ore futures price rose for the third consecutive session on Thursday, driven by optimism about stimulus measures as well as positive steel data from China's largest consumer. The Communist Party's leadership is expected to announce its five-year plan during a four-day meeting held behind closed doors that began Monday. After a series of disappointing data, and amid the massive uncertainty caused by the US-China trade dispute, there were lingering hopes that China would unveil some stimuli to boost the economy and shore up consumer trust. He Lifeng, the Chinese vice premier, will be holding trade talks with U.S. officials in Malaysia between October 24 and 27. The daytime trading price of the most traded January iron ore contract at China's Dalian Commodity Exchange was 0.79% higher, closing at 777 Yuan ($109.08). As of 0740 GMT, the benchmark November iron ore traded on Singapore Exchange was trading at $104.65. Two analysts and one trader said that the prices were also helped by better-than-expected data on steel, which indicated a firm demand for ore in the near future. Data from the consultancy Mysteel revealed that total inventories of major steel products dropped by 1.7% during the week ending October 23 and steel production rose by 1%. The price of the main steelmaking ingredient has been limited by the expectation that fundamentals will weaken in the fourth-quarter, due to robust shipments and sagging demands. Fortescue, an Australian company, reported a 4.2% increase in iron ore shipment for the first quarter on Thursday. Vale, a Brazilian mining company, reported its highest quarterly production of iron ore since 2018. Analysts said that the concern about a limited domestic supply was driving up prices of coking coal and other steelmaking ingredients. The benchmark steel prices on the Shanghai Futures Exchange are mixed. Rebar was up 0.43%. Hot-rolled coils were up 0.65%. Stainless steel gained 0.55%. Wire rod fell 0.12%. $1 = 7.1230 Chinese Yuan (Reporting and editing by Amy Lv, Colleen Howe and Janane Venkatraman).
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Gold prices rise as geopolitical risks and trade tensions bolster appeal
Gold prices rose Thursday as U.S. Sanctions against Russia and potential new export controls for China added geopolitical risk, boosting demand for safe haven assets. As of 0720 GMT, spot gold was up by 0.6% to $4,119.54 an ounce. In the previous session, gold fell to near a two-week low. U.S. Gold Futures for December Delivery climbed 1.7%, to $4134.60 an ounce. Han Tan, Chief Market Analyst at Nemo.money said that gold is trying to find its feet after the much-needed and healthy technical pullback. The Trump administration has considered a plan that would curb a range of software-powered products exported to China – from laptops and jet engines – as retaliation for Beijing's recent round of restrictions on rare earth exports. The U.S. president Donald Trump has imposed sanctions against Russia related to the Ukraine for the first and only time during his second term. These sanctions target oil companies Lukoil, and Rosneft. Gold prices are up 57% in the past year. They reached a record high of $4,381.21 Monday. This is due to geopolitical, economic and rate-cutting bets, as well as sustained central bank purchases. The focus now shifts to Friday's U.S. Consumer Price Index report, which was delayed by the government shutdown. This is expected to provide more information on the Federal Reserve’s interest rate reduction path. Investors have almost completely priced in a 25-basis point rate cut for the Fed meeting next week. In low-interest rate environments, non-yielding gold bullion is likely to perform well. Mark Haefele said that UBS' Chief Investment Officer, Mark Haefele stated in a report, "We still view gold as a portfolio diversifier. Further gains towards our upside case of 4,700/oz are possible should adverse macro- and political developments arise." Spot silver increased 1.6%, to $49.28 an ounce. Platinum gained 1.8%, to $1.651.25, and palladium fell 0.8%, to $1.447.90. (Reporting and editing by Subhranshu Sahu and Ronojoy Mazumdar in Bengaluru.
Vietnam eyes greener power however rely on coal to prevent blackouts
Lights are off and a/c is down at the headquarters of Vietnam's staterun electrical energy provider EVN as the nation's. leading power utility tries to lead by example to prevent a repeat. of in 2015's debilitating blackouts, a main tells visitors.
But numerous services around Vietnam's capital Hanoi. seem ignoring the call to save power, keeping. decorative but otherwise purposeless neon lights on the exterior. of skyscrapers on all night.
The difficulties in cutting usage highlight. the challenges facing Vietnam a year after abrupt failures triggered. losses of hundreds of millions of dollars to multinational. producers with investments in the Southeast Asian nation.
Vietnam is pursuing a patchwork agenda of energy-saving. steps, grid upgrades, regulatory reforms and a huge. boost of coal power as it looks for to avoid electrical energy. shortfalls, according to federal government information and interviews with. authorities and specialists.
But Trinh Mai Phuong, EVN's interactions director,. discusses during a media check out that even the greatest. infrastructure upgrade underway, a new $1 billion transmission. line linking the centre of the country to the extremely. industrialised north that was hard struck by blackouts in 2015,. might not suffice.
I would not say it is a video game changer, he said of the line. that could be completed as early as this month, keeping in mind power. usage is expected to hit record highs in the coming weeks. as the nation braces for more heatwaves.
The skyrocketing power demand is making it progressively challenging. for Vietnam to fulfill environment modification commitments while supplying. enough power to please large financiers such as Samsung. Electronic devices, Foxconn and Canon.
Broader sector-wide reforms are required over the longer term,. foreign financiers and analysts said.
EMERGENCY STEPS
In the short term, Vietnam is banking primarily on coal to. provide adequate dependable electricity. It may be simply enough - or. not - but in any case it may indicate a blow to the country's. dedications to decrease dependence on nonrenewable fuel sources.
Coal usage rose enormously in the very first 5 months of 2024,. with coal-fired power plants accounting usually for 59% of. electricity output, going beyond 70% some days, according to EVN. data.
That was up from nearly 45% in the same period last year and. 41% in 2021, when Vietnam started drafting plans to cut coal that. persuaded international donors to dedicate $15.5 billion to assist. phase out the fuel.
Thanks to a new coal-fired power plant that came online in. 2023, coal represented 33% of overall installed capacity last. year, up from 30.8% in 2020, taking Vietnam further away from. the goal of reducing that to 20% by 2030.
Energy conservation is another crucial pillar of the plan. EVN. and its regional systems have actually encouraged energy-hungry customers,. including foreign manufacturers, to conserve power with tailored. measures, specifically in peak hours.
But that dangers Vietnam's credibility as a dependable place for. financial investment and could affect future manufacturing expansion. plans, according to foreign investors who declined to be named. because they were not authorised to speak to media.
The matter ought to be attended to by solving generation and. distribution problems, and not from the intake side, 2. foreign financiers said.
Vietnam's industry ministry did not reply to a request for. comment.
CLEANER OPTIONS
Vietnam is using just a fraction of its set up solar and. onshore wind capacity due largely to administrative hurdles.
It has not approved policies to kick-start offshore wind. jobs and hold-ups dog projects to build power plants sustained. by imported liquefied natural gas, which is cleaner than coal.
The 4 energy sources together must account for more. than 40% of installed capacity by 2030, according to the. government's plans, though analysts are sceptical.
Hydropower is projected to fall to less than 20% of. set up power generation by the end of years from more than. 30% in 2020.
But some capability is being added in the north where needs. are higher.
Among Vietnam's biggest hydropower plants at Hoa Binh is. adding 2 General Electric turbines to its existing. eight, which will enhance its overall capacity to 2.4 gigawatts from. less than 2 GW now by the 2nd half of 2025, said Dao Trong. Sang, EVN's supervisor of the growth job, throughout a visit to. the dam.
The Hoa Binh plant, integrated with the new transmission. line that brings electrical energy to the north from separate plants,. may include 8% capability to the power-hungry north.
REFORMS NEEDED
The power crisis can not be fixed without long-awaited. reforms, experts state, though progress to date has actually been slow.
In April, the market ministry issued an updated. methodology for determining electricity costs, a step towards. possibly restoring jobs stuck for several years due to the fact that of an absence of. clarity about tariffs.
However, the approach might force developers to take on. extreme risk, complicating their access to fund, stated a. Vietnam-based official who decreased to be called because they. were not authorised to speak to media.
A different draft decree making it possible for makers to buy. electricity directly from producers is viewed as close to approval. after years of internal argument, according to a number of analysts.
The use of direct power purchase contracts (DPPAs) could. make it simpler for international business to prevent greater. tariffs on exports and increase using renewables to help them. meet environmental, social and governance requirements.
But the DPPA guidelines require to be integrated with other reforms,. such as clearer arrangements to straight connect factories to. power-generation jobs, the authorities stated.
(source: Reuters)