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Climate Fund backs $6 Billion Jordan Water Project with its largest deal
According to its chief executive, the world's largest climate multilateral fund made its biggest financial commitment yet to build a $6 Billion water desalination plant in Jordan. The Green Climate Fund was backed ahead of COP30 in Brazil, in November. It also comes a decade after Paris Agreement which cited the fund as a major way to finance efforts against global warming. Mafalda duarte said that it would transform the country. She added that this was the "highest investment" the fund had made in a single project. In South Korea, a grant and loan of $295 million were approved by a board on Wednesday in order to attract financing from other sources such as the International Finance Corporation (IFC) and private lenders. A WORLD-WIDE DESALINATION CRAFT Jordan has the lowest water availability on earth and the desalination plant, one of the biggest in the world will serve almost half of its population. It was predicted that the situation would worsen, with temperatures rising by 4 degrees Celsius and rainfall falling by 21%, resulting in increased evaporation and droughts. Jordan's leader has described the Meridiam-SUEZ project as a priority. Jordanian officials said that the U.S. has committed $300 million as grants and $1 billion as loans to the project. Other countries from the region are also expected to contribute. Raed Abu Soud is Jordan's Minister for Water and Irrigation. He said that the project was a strategic one to desalinate and deliver 300 million cubic metres of water to all parts of Jordan every year. 24 PROJECTS are up for approval at the GCF Board meeting Senior officials involved in the project stated that the GCF funds would enable it to reduce the cost of drinking water by 10 cents per litre, and save the government $1 billion over the course of the project. He added that it would allow the IFC better terms on loans, which will result in cheaper financing for private sector. At the GCF Board meeting, 24 projects are up for discussion. The fund would be able to disburse $1.4 billion if all 24 projects were approved. GCF has accelerated its decision-making this year as part of a broader overhaul to the multilateral financial system in the world. The COP30 will explore ways to go even further. Duarte stated that while MDBs are still not doing enough in mobilising private sector capital, stakeholders need to be realistic with how much risk they will take. (Editing by Alexander Smith & Thomas Derpinghaus).
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Spain commemorates the anniversary of the deadly Valencia Floods with a state funeral and solemn marches
Spain's King Felipe is attending a state funeral on Wednesday in Valencia, as part of several events to mark a year since the deadly floods that killed 237 people. Even as late as last week, authorities were still finding victims in the mud. The country is dealing with the worst flooding it has seen in Europe for more than 50 years. On October 29, 2024, flash floods caused from torrential rainfall washed away bridges and cars as well as people. They also flooded homes and underground parking lots. In the Valencia region, 229 people were killed and eight more in other parts in Spain. Residents plan to place 229 foil emergency blankets, representing the victims, in a Valencian square. In Benetusser (one of the most affected suburbs of Valencia), two silent marches with torch-bearing participants will be held. Tens of thousands of demonstrators in Valencia called for the resignation of conservative regional leader Carlos Mazon at a protest on Saturday. Protesters claimed that the regional government failed to alert citizens in time during an emergency. They sent a text message warning when many buildings had already been submerged. After a local reporter claimed that she had spent nearly four hours with Mazon at a meeting of emergency services, a court is now investigating his handling of the situation and whereabouts. Mazon refused to reveal the details of his lunch, or the bill for the restaurant. However, he claims he was informed throughout the day over the telephone. On Tuesday, the government approved a loan guarantee of 5 billion euros ($5.8billion) to assist businesses and homes that were affected by floods. More than 8 billion euro has been spent by the government to clean up flood-damaged areas. Heavy rains and flash floods in the area were caused by an isolated high-altitude depression, locally known as a DANA. This is a weather system that can be highly destructive when warm and cold air combine to create powerful rain clouds. Scientists believe that climate change is causing this phenomenon to occur more often.
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OMV's profit forecast for the third quarter is topped by fuels and chemicals
OMV, Austria's oil, gas, and chemicals group, beat expectations for the third quarter profit on Wednesday. It benefited from higher contributions by its fuels, chemicals, and segment. According to the company, analysts had expected 1,17 billion euros. Clean operating results are based on current costs of supply and exclude one-off items, short-term gains or losses and energy inventory holdings. OMV's chemical division is considered its growth engine, as it transitions from polluting fuels to cleaner alternatives. It produces chemicals that are used in car parts, gas and water pipes and medical syringes. The division achieved a third-quarter operating profit of 222 millions euros, an increase of 64% over last year. The decline in sales revenue from continuing operations was primarily due to lower volumes of contracts with customers, particularly in the energy sector. The company reported that the energy production fell by 8% mainly due to the divestment from SapuraOMV. OMV reported earlier this month that it had recorded lower energy prices for the third quarter 2025. The average price of natural gas fell by 6% compared to the previous quarter. Reporting by Maria Rugamer, Editing by Harikrishnan Nair. $1 = 0.8575 Euros
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Gold Stages rebound on bargain-hunting ahead of Fed verdict
Gold prices rose Wednesday, as bargain-hunters stepped in to buy after the bullion fell to a 3-week low the previous session. Investors are now waiting for the Federal Reserve rate decision that will be announced later in the day. As of 0634 GMT spot gold rose 0.7% to $3,977.30 an ounce after falling as low as it has been since October 7. U.S. Gold Futures for December Delivery gained 0.2%, to $3.990.60 an ounce. Kelvin Wong, senior market analyst at OANDA, said: "The fuel behind this short-term gold correction is the readjustment from safe-haven instruments to more responsive instruments like global equities because of trade optimism." Gold is under pressure to fall due to short-term leverage and technical levels being breached. The fundamentals of gold are still positive. Over the weekend, Chinese and U.S. official hammered out the framework for a trade agreement between President Donald Trump and Xi Jinping that would pause the steeper U.S. Tariffs and Chinese export controls on rare-earths. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to erode demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases," ANZ stated in a report. Investors are waiting for Jerome Powell's forward-looking comments at the Fed's policy meeting, which is scheduled to end on Wednesday. At its Thursday policy meeting, the European Central Bank will likely leave interest rates unchanged. Gold that does not yield is a good investment in low interest rate environments and economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Spot silver rose 1.5% to $47.53 per ounce. Platinum edged up 0.1% to $1.587.70, and palladium increased 0.9% to $1.405.99.
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Sources: China's smelter group does not set Q4 copper TC/RC guidelines
Sources said that China's leading copper smelters have decided not to set fee guidance for copper concentrate processing in the fourth quarter of 2025. This is the third time in a row they have taken this decision, which highlights a long-term feedstock shortage. Two sources familiar with the matter confirmed that the decision on Wednesday was taken at a quarterly gathering of members of the China Smelters Purchase Team. The CSPT is a group of sixteen leading smelters who are expected to follow the guidelines in dealings for spot copper concentrate. Treatment charges and refining costs (TC/RC), a major source of revenue for miners, are usually paid to refine concentrate and tend to decrease when the concentrate supply is tightening. They rise with an increase in ore availability. The group has not provided such guidance for the second and third quarters, as spot prices have been negative since December. This means that smelters must pay miners. One of the sources said that there was some discussion about the direction, but they ultimately decided to not set any guidance. It's best to wait until November, when the annual negotiations begin. All sources asked for anonymity because they were not authorized to speak with media. Global mining output is growing faster than smelting capacities, resulting in a tightening of concentrate supplies that squeezes smelters’ margins. The suspension of Freeport’s flagship Grasberg copper mine in Indonesia, which is the second largest mine in the world, has further reduced the prospect of mined supplies. The Chinese smelters have not reduced their output in a significant way, as the revenue generated from other products such as sulfuric acid, gold and silver, has offset the losses caused by copper sales. This year's copper production is expected to reach a new record. Some overseas smelters have either reduced output or suspended operations because of a shortage of feedstock. Chinese smelters have agreed to process concentrates from Chilean miner Antofagasta at no cost, which is a record for the industry. Reporting by Amy Lv in Beijing and Lewis Jackson in London, with editing by Jacqueline Wong & Michael Perry.
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Australian shares fall to a two-week low after inflation spikes sink rate-cutting hopes
Australian shares closed on Wednesday at their lowest levels in two weeks as a spike of core inflation dashed any hopes for a rate cut in the near future, prompting a sale-off in real estate and banking stocks. The S&P/ASX 200 Index fell by 0.96%, to 8,926.20. It is the first time that the index has fallen below the important 9,000-point mark since October 15. Data released on Wednesday showed that the core inflation rate rose at the fastest pace in two years in the third quarter of the year. This dampened expectations of a cut in rates next week, and forced markets to reduce their bets about the Reserve Bank of Australia (RBA)'s broader easing cycles. The odds of a rate reduction in December have fallen below 22%, from 47% before the data. Citi, Goldman Sachs and Standard Chartered are all Australian 'Big Four banks' that expect the RBA's key interest rate to remain at 3.60% in this year. The top lender CBA's economists have abandoned their calls for another rate cut in February next year and expect that the cash rate will remain unchanged for an extended period. Financials, the largest sector, fell by 1.9%, after two consecutive days of gains. All four of the "Big Four" banks closed in the red. National Australia Bank, the top lender in Australia, lost 2.6%. The cash rate is the basis for the valuation of defensive assets, which are an alternative to bonds. As a result, we see those stocks being sold as the expectation of a rate reduction next week has now been removed, said Luke Winchester. Goodman Group, a sector leader, fell 1.4%. CSL, the healthcare sector's main stock, fell by 4% on Tuesday. The benchmark S&P/NZX 50 Index in New Zealand closed at 13,409.21, a slight increase. Atharva Singh, Bengaluru (reporting); Sonia Cheema, editing)
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Gold falls ahead of Fed decision; dollar strength and trade optimism weigh
Gold prices were unchanged on Wednesday ahead of a Federal Reserve interest rate cut that was widely expected. However, expectations of a possible U.S. China trade deal, and a stronger Dollar, kept bullion at a three-week-low. As of 0513 GMT spot gold was unchanged at $3,951.59 an ounce after Tuesday's drop to its lowest level since October 7. U.S. Gold Futures for December Delivery fell 0.4% to $ 3,965.20 an ounce. Gold is now more expensive to other currency holders due to the 0.2% rise in the dollar index. Kelvin Wong, senior market analyst at OANDA, said: "The fuel behind this short-term gold correction is the readjustment from safe-haven instruments to more responsive instruments like global equities because of trade optimism." Gold is under pressure to fall due to short-term leverage and technical levels being breached. The fundamentals of gold are still positive. Over the weekend, top Chinese and U.S. economists hammered out the framework for a trade agreement between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. The deal would halt steeper American tariffs as well as Chinese controls on rare-earth exports. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to erode demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases, ANZ stated in a report. Investors are also watching for any language that Jerome Powell uses to express a forward-looking outlook. At its Thursday policy meeting, the European Central Bank will likely leave interest rates unchanged. Gold that does not yield is a good investment in low interest rate environments and economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Spot silver rose 0.8% per ounce to $47.38, platinum dropped 0.8% at $1,572.70, and palladium slipped 0.1% to $1.392.28.
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The morning bid is EUROPE: Fed, Big Tech, and Trump pageantry are the order of the day
Rae Wee gives us a look at what the future holds for European and global markets. The markets are busy today with the Federal Reserve's key policy announcement, and earnings from Wall Street tech giants and Europe. Microsoft, Alphabet, and Meta will release their results after the bell. It is important that they deliver strong numbers to justify their high valuations. Asia stocks rose on Wednesday, thanks to a spillover effect from Wall Street. This optimism was fueled by Nvidia's announcement that it would build seven new supercomputers for U.S. Department of Energy. Microsoft has reached an agreement with OpenAI that allows it to restructure as a public benefit company while also giving Microsoft a 27% stake in ChatGPT. The AI boom is looking good for the moment, but there's still a big question: Is it headed towards a bubble? If there are any signs that demand has slowed or that massive spending has not paid off as expected, it could cause a rush to sell crowded stocks in Big Tech. Investors will be watching for further Fed easing in December. The ongoing U.S. shutdown has prevented the release of important economic data, at a time when there is uncertainty over the state of the U.S. employment market. However, signs of a cooling in labour conditions and softer-than-expected inflation could give policymakers the confidence to lower interest rates. The central bank will also be focusing on whether it finally ends its long-running program of balance sheet reduction, also known as quantitative tightening. The yen gained strength on other markets after U.S. Treasury Sec. Scott Bessent warned Tokyo to not keep the yen weak by allowing its central bank to raise rates. The Australian dollar climbed after data revealed that domestic consumer prices rose by the largest amount in two-and-a half years during the third quarter of 2009. A shockingly large increase in core inflation appeared to rule out any interest rate cuts in the near future. The U.S. president Donald Trump has a golf club to a golden crown. He landed in South Korea Wednesday, the last leg of his Asia tour. In bilateral talks, he will discuss trade and investment with South Korean president Lee Jae Myung. The presidential office announced that Lee would present Trump with a replica of a gold crown, and will also award him the "Grand Order of Mugunghwa", which is the highest decoration in the country. Trump arrived in South Korea after a visit to Tokyo where he praised Japan's first woman prime minister, Sanae Takayichi. He lauded her commitment to accelerating a military buildup, and welcomed the signing of deals on rare earths and trade. Takaichi gave Trump a putter that Shinzo Abe used, Trump's golfing partner and Japan's former leader. This was one of many references to Trump's relationship with Abe which anchored ties between both countries during Trump's first presidential term. The following are key developments that may influence the markets on Wednesday. Federal Reserve and Bank of Canada Rate Decisions Microsoft, Alphabet and Meta earnings - Mercedes-Benz, UBS, Adidas, GSK, Airbus earnings
Russia claims that Ukraine has targeted Moscow for the third night in a row with drones.
Russian authorities reported that Ukraine had sent drones to Moscow for a third night in a row and also targeted other Russian regions. The drones disrupted air traffic across the country, and threatened an industrial plant located in the south of Russia, they said.
The Russian Defence Ministry announced on Telegram that Russian air defence units had destroyed 100 Ukrainian drones over the course of the night, including six in Moscow and thirteen over the bordering areas.
Kyiv continued to launch long-range drone attacks on Moscow and other Russian regions over the past few months. The aim, according to Kyiv, was "to hit Russia's military and industrial assets and sap its war economy, and show Russians that the conflict is not far away."
Sergei Sobyanin said that the attacks on Moscow were in waves.
Rosaviatsiya, the Russian aviation watchdog, said that three of Moscow's airports and others in other parts of the country were temporarily closed for safety.
Vladimir Vladimirov said that the governor of the Stavropol Region in Russia, Vladimir Vladimirov also reported on Telegram that Ukraine launched drones against the Budyonnovsk Industrial Zone. The Russian Defence Ministry said that its units shot down two drones in the area, which is located in the south of the country.
Vladimirov, a Telegram user, said that the attack did not cause "significant" damages and there were also no casualties.
Ukrainian media outlets, such as RBK Ukraine, claim that Kyiv has attacked the Stavrolen Chemical Plant in Budyonnovsk, a Russian Lukoil-owned plant.
Stavrolen, according to Russian and Ukrainian press, is one of Russia’s largest producers of polyethylene (polypropylene) and polyethylene.
Stavrolen's governor did not disclose what was attacked in Budyonnovsk. Stavropol Governor did not reveal what happened in Budyonnovsk.
Russia usually does not provide much information about the impact of Ukrainian attacks on its territory, unless there are civilians or infrastructures that have been hit.
The Russian Defence Ministry confirmed that 35 Ukrainian drones were destroyed by Russian units in the Moscow area over the two previous nights. No damage was reported.
(source: Reuters)