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South Sudan President fires Military Chief after Three Months, Restores Predecessor
State-run TV reported that South Sudan President Salva Kiir removed the country's chief of military and reinstated its predecessor, whom Kiir had dismissed three months earlier. South Sudanese military and government officials are undergoing a constant turnover as Kiir struggles to deal with the armed conflict in the country and the speculation about his succession. Kiir has been leading a transitional administration in the impoverished, fractured country since its independence from Sudan, in 2011. Elections have been delayed twice and Riek Makar, Kiir’s main rival in a civil war that lasted from 2013-2018, was accused of treason last month. South Sudan Broadcasting Corporation reported late Wednesday that Kiir appointed Paul Nang Majok as the new Chief Defence Forces to replace Dau Aturjong, without giving any reason for this decision. Aturjong has been reassigned as a technical advisor at the Ministry of Defence. Kiir sacked Majok in July without any explanation and replaced him by Aturjong. This decision was made after renewed fighting in northeast, where the military had been briefly overrun with a Nuer militia. Machar was placed under house arrest by the government in March on suspicion of supporting militias. He was then tried for crimes against humanity, murder, and treason last month. Machar denies the allegations. His detention reignited concerns of a full-blown civil conflict, as his supporters accused the government of violating an agreement signed in 2018 for peace and power sharing. Analysts believe that Kiir’s repeated shake-ups in the government and security apparatus is a way to consolidate his power and keep various factions happy. Last month, U.N. inspectors accused South Sudanese officials of "systematic looting", or stealing the nation's resources for personal gain.
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Sources say that India's ONGC will provide the first guarantee for 15 years to unit's bond sales.
Three sources familiar with the matter confirmed on Thursday that India's Oil and Natural Gas Corp. (ONGC), a state-owned company, had provided its first guarantee for 15 years to a rupee denominated bond. The bond is expected to be issued this quarter by a subsidiary. ONGC Petro Additions Ltd. (OPAL), a company in which ONGC holds more than 95 percent of the shares, wants to raise 50 billion rupees (563.22 million dollars) via a multi-tranche bond issue, according to their report. Sources who requested anonymity because they were not authorised by the media to speak on their behalf said that ONGC stepped up to increase its appeal to investors after Crisil rated OPAL's bonds as AA+ a couple of months ago. The provisional AAA credit rating is now a result of ONGC's unconditional, irrevocable and unconditional guarantee. The rating agency stated in a letter that ONGC would ensure OPAL's obligations are met in the timeframes specified. This is the first time that ONGC has guaranteed bonds since January 2010, when ONGC Videsh Ltd., another subsidiary of ONGC, was backed. OPAL has established a petrochemical plant in Gujarat in west India. It is now looking to raise money through a bond issue over five years. The company is also in discussions with large state-run investors who could act as anchors, giving other investors some confidence, according to another source. Source: "In general, the issuer has pushed for very low coupons rates. However, investors are uneasy with exposure to lower yields. Therefore, issuance sizes have always been smaller." OPAL will release the issue in this quarter once it has secured an investor. A 'email seeking comment was not answered by either company. OPAL currently has bonds outstanding worth 17.60 billion rupies. The last time it tapped into the bond market was 15 months ago when 1,60 billion rupees were raised through a bond issue of three-year bonds at 8.39%. $1 = 88.7750 Indian Rupees (Reporting and editing by Dharamraj Dhutia, Khushi malhotra)
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Investors assess the Israel-Hamas deal as gold holds above $4,000.
The gold price held above $4,000 on Thursday as investors analyzed the Israel-Hamas truce deal. Meanwhile, broader geopolitical, economic and political uncertainty, along with expectations of U.S. interest rate cuts, sustained the bullish sentiment. As of 832 GMT, spot gold was unchanged at $4,035.70 an ounce. U.S. Gold Futures for December Delivery fell 0.4% to $ 4,055.20. On Wednesday, the price of gold reached a new record high, reaching $4,059.05. Silver has also been catching up to the gold rally, and is now up 0.7% at $49.21 an ounce after reaching a record high of $49.57 per ounce on Wednesday. Nikos Tzabouras is a Senior Market Analyst with Tradu. The path to new highs remains wide open. U.S. president Donald Trump announced a ceasefire deal and hostage agreement between Israel and Hamas as part of the first phase in his plan to end the war in Gaza, which has claimed the lives of more than 67,000 and changed the Middle East. The U.S. Dollar Index rose by 0.1% and hovered near a high of two months, making bullion priced in dollars more expensive for buyers from overseas. Gold's rise has been attributed to geopolitical factors, such as the Middle East conflict and the war in Ukraine. Also, ETF flows, U.S. interest rate cuts, and tariff-related economic uncertainty have contributed. The yellow metal is set to have the biggest annual gain since 1979, with a 53% increase in the past year. According to minutes from the Federal Reserve's September 16-17 meeting, released on Wednesday, officials acknowledged that the risks facing the U.S. employment market were sufficiently high to justify a rate reduction, but they remained cautious due to stubborn inflation. The markets are pricing in a cut of 25 basis points each for October and December. UBS stated in a report that "the ongoing US government shutdown" has given the gold market a boost, along with mounting fiscal concerns in Japan & France due to recent leadership changes. Gold that does not yield is a good investment in low interest rate environments and times of geopolitical and economic uncertainty. Lukman Otunuga is a senior research analyst with FXTM. He said that if risk sentiment continues improving, gold prices may fall in the short term as investors rush to riskier assets. Silver is up over 70% this year. It has benefited from the same factors that have driven gold's rally, as well as the tightness of the spot market. Palladium, which has been at a two-year high, rose 0.7%, to $1460.14. Platinum fell by 0.2%, to $1660.55.
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Nestle leaves global alliance to reduce dairy methane emissions
Nestle, a food group, announced on Wednesday that it has withdrawn from the global alliance to reduce methane emissions. The alliance aims at reducing the impact of milk farming on global warming. In December 2023 the Dairy Methane Action Alliance will be launched. Members, including Danone, Kraft Heinz, and Starbucks, have committed to measure and report methane emissions in their dairy supply chain and to publish plans for reducing those emissions over time. Nestle didn't say why it pulled out of the Alliance, but it said that it would continue to work towards reducing greenhouse gases, including methane throughout its supply chain and adhered to its net-zero commitment by 2050. Nestle announced on Thursday that it would be partnering with World Farmers' Organisation in order to make food systems more resistant to climate change. CLIMATE ALLIANCES ARE ON THE BACKFOOT This is the latest blow for a corporate coalition seeking to limit global warming. It comes at a time when U.S. president Donald Trump is dismantling a number of climate protection initiatives. A number of major banks have withdrawn from the main group in charge of reducing carbon emissions. Nestle, a Swiss company, said that it "reviews its memberships with external organizations" on a regular basis. As part of this review, Nestle has decided to discontinue its membership in the Dairy Methane Action Alliance. Nestle's 2024 non-financial report stated that by the end of 2024 it had reduced its methane emission levels by nearly 21% from 2018. According to the U.S. Environmental Protection Agency (EPA), methane is 30 times more powerful than carbon dioxide. This makes it an important focus in efforts to reduce global warming. According to Environmental Defense Fund (EDF), which founded the Methane Alliance, livestock is the main source of nearly 40% of all human-caused emissions of methane. Nestle's Logo was Removed from the EDF Website's Main Page, but its name is still displayed on other pages. Nestle's membership with the EDF was terminated after a review of its external partnerships. The EDF did not give a reason for this withdrawal. Katie Anderson, Senior Director, Business, Food & Forests at EDF, said: "We are grateful for Nestle's commitment to reducing dairy emissions with its Dairy Climate Plan, and Net Zero Roadmap." Alexander Marrow reported. Mark Potter (Editing)
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Aramco signs deal to increase stake in struggling JV, Petro Rabigh
Saudi Aramco announced on Thursday that it had acquired a 22,5% stake in the joint venture for refining and petrochemicals Petro Rabigh, from Japan's Sumitomo Chemical. The acquisition is part of the turnaround plan for this loss-making venture. This agreement increases Aramco’s stake in Petro Rabigh from about 40% to 60%. It is part of an effort to improve the performance at the joint-venture, which has suffered significant losses over recent years due to a difficult global market for petrochemicals. According to calculations, Petro Rabigh's last full-year profit was in 2021. Since then, the company has accrued net losses totaling 12,4 billion riyals. Petro Rabigh's turnaround plan comes at a time when Aramco, Saudi Arabia’s long-time cash machine, is navigating a period of reduced profit due to lower oil price. In August, the company reported a 22% decline in its second-quarter profits. It also announced cost-cutting initiatives across the company and an intention to divest assets that are not core to free up capital for more profitable investments. Petro Rabigh’s turnaround plan includes the waiver $1.5 billion of shareholder loans, and a future joint injection of 5,26 billion riyals to be split equally between Aramco & Sumitomo. The joint venture stated in a filing that "the board welcomed the steps and measure agreed to be taken" by Saudi Aramco. This shows its support as a significant shareholder for the long-term potential of Petro Rabigh. Sumitomo will now own 15% of the company. Aramco stated that the move would allow it to strengthen the downstream value chain by securing its crude oil placement and converting it more into high-valued products. Aramco will assume the marketing rights of Petro Rabigh products as part of this agreement. Mark Potter edited the report by Yousef Sabah.
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Zelenskiy claims that Russia's gasoline supply may have dropped by up to a fifth following the Ukrainian attacks
The President of Russia, Volodymyr Zelenskiy, said that Ukrainian long-range attacks on Russian energy installations may have cut gasoline supplies by as much as a fifth in Russia. Both sides are intensifying their attacks on the other's energy infrastructure. As diplomatic efforts to end this war have largely stagnated and there has been little movement on the front lines, Russian forces are focusing their efforts on crippling Ukrainian oil refinery capacity while Ukraine is targeting Russia's gas production. Calculations in August indicated that Ukrainian attacks reduced Russian oil refinery by nearly a fifth at certain times. Zelenskiy implied in his comments that the level of shortage is now continuing. Zelenskiy told journalists in a statement released Thursday that "this still needs to verified but we believe they've been able to lose up to 20% of the gasoline supply directly because of our strikes." The Kremlin said that the domestic Russian fuel market was fully supplied. Zelenskiy stated that Ukrainian forces used Neptune and Flamingo rockets produced domestically in recent attacks as part of Ukraine’s efforts to expand its homegrown weapons industry. Zelenskiy said that Russian forces have carried out 1,550 attacks on energy-related targets within Ukraine's Chernihiv and Sumy regions in the last month but only achieved 160 hits. US AND RUSSIA DO NOT SHARE A COMMON PERSPECTIVE Since the summer, Zelenskiy claimed that Ukrainian forces had destroyed a Russian campaign. He said that Kremlin forces will try to "urgently take" the strategic eastern city, Pokrovsk. Moscow has failed to convince U.S. president Donald Trump that it can capture the entire eastern Donbass region. Trump, who was seeking a quick end to the war, expressed frustration in recent weeks with Russian President Vladimir Putin, and a stronger support for Kyiv’s war effort against Moscow. Zelenskiy stated, "We do not believe that the U.S. or Russia share a common perspective on war as of today." "And the U.S. knows that Russia lies." Zelenskiy announced that his chief of staff, as well as Ukraine's Prime Minister, would be visiting Washington in the first week of next month to discuss energy, air defence and sanctions against Russia. (Reporting and editing by Sharon Singleton, Philippe Fletcher, and Dan Peleschuk)
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Minister: Indonesia has issued a rule that will help small mining firms to win concessions.
Indonesia's mining minister announced on Thursday that the country has released a regulation to assist small and medium-sized businesses as well as cooperatives in securing mining concessions, without going through a competitive process. The new regulation is a follow-up to a law that was passed in February, which gives priority access to small firms, such as the business units of religion groups, to some mining areas. Prior to this law, the only companies that had priority access to certain mining areas in the resource rich country were state-owned firms. Bahlil lahadalia, the mining minister, told a conference of economics that only those cooperatives and SMEs that meet certain criteria would be given priority access. When will justice be served if the tendering process is continued? Bahlil made a speech. Indonesia awarded a coal mine concession to each of the islamic groups Nahdlatul Ulama (Nahdlatul Ulama) and Muhammadiyah on Borneo Island last year. Indonesia is a major producer of nickel and thermal coal, and also has deposits of bauxite and copper. The country is also trying to extract rare Earths that are found in nickel and tin by-products. (Reporting and writing by Fransiska Naangoy, Gayatri Suryo; editing by David Stanway).
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Shanghai copper reaches a 16-month high due to supply concerns
Shanghai copper prices jumped by more than 16 months on Thursday, as China resumed trading after National Day. Concerns over supply from large mines supported the price in an already tightening market. The Shanghai Futures Exchange's most traded copper contract closed the daytime trade 4.22% higher, at 86 730 yuan per metric ton ($12,165.97). The contract reached its highest level since May 22, 2020 at 86.950 yuan. As of 0704 GMT on Wednesday, benchmark three-month copper at the London Metal Exchange had risen 1.92% to $10,873.5 per ton. This was a significant increase from its previous gain. It has now reached a new 16-month high. The International Copper Study Group reduced its estimate of 2025 market surplus to 178,000 tonnes from 289,000 due to disruptions in major mines, including Freeport’s massive Grasberg mining complex in Indonesia which has been closed for a full month. The group expects to have a deficit of 150,000 tons in 2026 compared to its previous estimate, which was a surplus of 209,000 tons. Teck Resources reduced its production forecast at its flagship Chilean copper mining project Quebrada Blanca until 2028 on Wednesday. The dollar's downward trend also helped copper prices. The weaker dollar means that commodities priced in dollars are cheaper for traders who use other currencies. The most active contact closed daytime trading at 287.770 yuan per ton, up 3.49%. This was due to a more aggressive crackdown in Indonesia, the top exporter of tin. On Monday, Indonesia transferred assets, including smelters, equipment and PT Timah, a state-owned tin mining company, to the miner. President Prabowo subianto urged all authorities, including the military, Custom Office and Coast Guard, to continue efforts to stop illegal mining. Nickel surged by 2.52%, while lead gained 1.21%. $1 = 7.1289 Chinese yuan $1 = 7.1289 Chinese Yuan (Reporting and editing by Dylan Duan, Lewis Jackson)
Austria's OMV reports a rise in energy sales despite currency problems
Austrian oil and gas group OMV announced on Thursday that it had recorded higher sales volumes in its energy division in the third-quarter, which helped to balance out some of the headwinds in this sector.
In a trading update, the Vienna-based company said that the higher sales volumes had been offset by a negative currency exchange, lower realized gas price and a write-off of a Norwegian well.
The company said that although its chemicals business had lower sales of polyolefin, the segment would benefit from a positive effect on inventory.
OMV's chemical division is viewed as the growth engine of the company, as it transitions away from fossil fuels that pollute. It produces chemicals for gas and water pipes as well as car parts and medical needles.
The retail and commercial margins for OMV's feedstock and fuel business fell slightly as well compared with the previous quarter.
OMV reported lower average energy costs in the third quarter. Average natural gas prices dropped by 6% compared to the previous quarter. The average realized crude price also remained stable at $66.3 a barrel.
The full results for the third quarter will be released on October 29, 2018. Tristan Veyet reports from Gdansk and Milla Nissi - Prussak edoites.
(source: Reuters)