Latest News
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Gold jumps over 3% due to weaker dollar. Eyes on Mideast developments
Gold prices jumped by over 3% in?Wednesday's trading, mainly due to a weaker dollar. The?dollar fell and Treasury yields dropped, as markets watched developments in the Middle East to get fresh signals about inflation and interest rates outlook. By 09:44 am EDT (1344 GMT), spot gold had risen 3%, to $4199.78 an ounce. Bullion reached its highest level since the 22nd of June earlier in the session. U.S. gold futures increased 2.6% to $4260.80. Tai Wong is an independent metals dealer. He said, "Two consecutive days of lower yields combined with a week of softer dollars seem to have cleared the way for gold and silver." The U.S. Dollar was at its lowest level against the Japanese currency since?three months. This made dollar-priced gold more affordable to overseas buyers. Meanwhile, yields on U.S. 10 year notes were hovering?near a one-week-low. The ADP National Employment Report showed that the growth of private payrolls in the United States slowed down in July. Payrolls increased by 44,000, which was below what economists expected, who had predicted a gain of 70,000. In an interview with CNBC, Minneapolis Fed President Neel Kahkari said that he believed now was the right time to begin slowly increasing interest rates. According to the CME FedWatch Tool, traders?are pricing in about a 57% probability of a rate increase at the central bank's meeting on September. Due to its non-yielding characteristics, higher interest rates may reduce the appeal of bullion. Donald Trump, the U.S. President, said that his administration has had "very positive discussions" with Iran. This fuels expectations for a quick end to this five-month conflict. Spot'silver' rose by 4.2%, to $62.05 an ounce. Platinum gained 0.5%, to $1.725.58, reaching its highest price since June 17. Palladium also climbed 0.5%, to $1.359.80 and reached its highest price since early June. (Reporting by Sukanya Mitra in Bengaluru; Editing by Shailesh Kuber)
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The Russian central bank claims that higher fuel prices in Russia have accelerated the consumer price increase
The Russian central bank published the minutes of its July 24 meeting on Wednesday. They stated that higher fuel prices in Russia accelerated the consumer price growth in June by 0.3% and by 0.2% in the first half. After Ukrainian drone attacks on oil refining facilities disrupted the supply, Russians experienced a 'fuel shortage across all 11 time zones of the country. This led to long queues, higher gas prices, and rationing in some regions. Authorities say that the?situation? has stabilised?in many areas. Central bank officials said that the total direct and indirect impact on inflation of the fuel price increase will not exceed 1.5% for the entire year. The benchmark interest rate was cut to 14% from 14.25% on July 24, despite an 'inflation spike linked to Ukrainian drone strikes on major oil refineries and ecommerce warehouses. The regulator stated that most?board members thought there was room for more rate cuts in this?year, although the scope had shrunk. Reporting by Elena Fabrichnaya, Writing by Anastasia Teterevleva, Editing by Andrew Osborn
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TAE, a developer of fusion energy, signs an agreement for future fuel supply options with helium-3
TAE Technologies, a developer of fusion energy, announced on Wednesday that it had signed a deal with Black Moon Energy, whose private company could 'provide helium-3 as a fuel option in the future for its planned power plant. Nuclear fusion is still a long way from commercial power plants. Developers are still trying to prove the performance of reactors, attract capital, and ensure long-term supply. TAE has raised over $1 billion from Alphabet, Google, and Chevron. It is planning to build its first fusion plant, Da Vinci. The power plant will be able to generate 50 megawatts of electricity. Site selection is planned for later this year and operations are expected to start in 2031. The company stated that future power plants will be designed to produce between 350 and 500 megawatts. According to the companies, this agreement also includes collaboration in commercial development. Michl Binderbauer, TAE's chief executive officer, said that the agreement could offer a "alternative fuel supply option" as the company transitions to commercial power generation. Trump Media announced in December that it would acquire TAE through an all-stock transaction valued at more than $6 billion. This deal would create a publicly-traded fusion-energy firm. In 'June, the companies had planned to spin-off Trump Media's legacy business in social media, including Truth Social, and other assets into a separate listed entity. The Foothill Ranch, California-based firm expects to file merger-related documents to U.S. regulators, and complete the transaction by the end of 2026. This is subject to regulatory approvals, and other closing conditions.
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India eyes Venezuela blocks operatorship; regains Russia's Sakhalin-1 stake
India's Oil and Natural Gas 'Corp (ONGC) hopes to sign agreements soon with Venezuela 'to operate two oil 'blocks under the South 'American nation's 'new petroleum 'law', its finance chief'said 'on Wednesday. ONGC Videsh (ONGC Videsh is the overseas investment arm of the state-run ONGC) holds a stake of 40% in the San Cristobal oil field, and along with other Indian firms, a stake 18% in the Carabobo-1 Project. "Now, we are able to work freely on Venezuelan projects." We had restricted our operations in Venezuela because of sanctions-related risks," said finance director Anupam agarwal on a?analyst's call following the company's earnings for the June quarter. He said Venezuela offered additional incentives under its 'petroleum laws' and that ONGC was experienced in 'operating fields of similar geology? in India. He said, "We are taking over operatorship of some projects from PDVSA, we believe we will soon see positive developments." RUSSIAN SKHALIN-1 ASSET Agarwal stated that ONGC regained their 20% stake in Russia's Sakhalin-1 project for oil and gas after a four-year gap. He said that the restored stake increased the group's revenue contribution to the project from 5 billion to 6 billion rupees. After the West imposed broad?sanctions against Moscow in response to its invasion of Ukraine, Sakhalin-1 was transferred by Russia to a new domestic operator. ONGC has agreed to pay?payments to the Sakhalin-1 Abandonment Fund?in roubles, using dividends that have been frozen in Russia. This will allow it to keep its 20% stake, as was reported last year.
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India eyes Venezuela blocks operatorship; regains Russia's Sakhalin-1 stake
India's Oil and Natural Gas 'Corp (ONGC) hopes to sign agreements soon with Venezuela 'to operate two oil 'blocks under the South 'American nation's 'new petroleum 'law', its finance chief'said 'on Wednesday. ONGC Videsh (ONGC Videsh is the overseas investment arm of the state-run ONGC) holds a stake of 40% in the San Cristobal oil field, and along with other Indian firms, an 18% share in the Carabobo-1 Project. "Now, we are able to work freely on Venezuelan projects." We had restricted our operations in Venezuela because of sanctions-related risks," said finance director Anupam agarwal on a?analyst's call following the company's earnings for the June quarter. He said Venezuela offered additional incentives under its 'petroleum laws' and that ONGC was experienced in?operating similar geology - fields?in India. He said, "We are taking over operatorship of some projects from PDVSA." We believe that we will soon see positive developments. The new agreements have been signed. RUSSIAN SKHALIN-1 ASSET Agarwal stated that ONGC regained their 20% stake in Russia's Sakhalin-1 project for oil and gas after a four-year gap. He said that the restored stake increased the group's revenue contribution to the project from 5 billion-6 billion rupees per quarter, up to a total of?10 billion Indian?rupees (about 105.13 millions dollars). After the West imposed broad?sanctions against Moscow in response to its invasion of Ukraine, Sakhalin-1 was transferred by Russia to a new domestic operator. ONGC has agreed to pay?payments to the Sakhalin-1 Abandonment Fund?in roubles, using dividends that have been frozen in Russia. This will allow it to keep its 20% stake, as was reported last year.
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Reliance's luxury unit brings Kim Kardashian SKIMS to India
Reliance Brands is the luxury retail arm of Reliance Retail. They have partnered with Kim Kardashian's SKIMS in order to bring this shapewear brand into India. This comes as global companies race to enter India's growing fashion and beauty market. The company, which is a subsidiary of Mukesh-Ambani's Reliance Industries, said that it would launch the SKIMS name across both physical and digital channels?starting in Delhi and Mumbai. Indian beauty retailers are racing to introduce international brands into the country as Gen Z and younger consumers gravitate towards global trends in beauty and brands backed by celebrities, thanks to social media. This year, Indian beauty and fashion retailer Nykaa teamed up both with Selena Gomez’s Rare Beauty as well as Shiseido Group’s NARS Cosmetics. SKIMS is a new partnership that will add to Reliance Retail’s growing portfolio of foreign brands, including Rihanna’s Fenty Beauty, Fenty Skin and designer brands like Stella McCartney and Valentino. The entry of SKIMS comes at a time when India's shapewear industry is booming, with a mix?of?homegrown direct to consumer brands, such as Underneat, competing for customers. SKIMS, founded in 2019, has recently opened'stores in London and Dubai after raising $225m in funding which valued the company at 5 billion dollars.
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Phillips 66 surpasses its quarterly expectations as the Iran War boosts US refining profits
Phillips 66'reported a nearly 4-fold increase in'second-quarter profits on Wednesday, crushing Wall Street expectations, as the Middle East conflic? squeezed global fuel suppli?es and sent U.S. refinery margins soaring. The Iran War has been a boon to U.S. refiners, as buyers from around the world have scrambled for alternative fuels amid fears of disruptions in Middle Eastern exports. Fuel exports from the United States have reached record levels, especially for diesel and other refined fuels. Phillips' refining segment reported a record jump in earnings adjusted to $3.09 Billion from $392 MILLION a year ago. The?realized profit margin? in the second quarter?more than?doubled from a year ago to $24.08 a barrel. The company's quarterly net profit was $3.85 billion. This is its highest quarterly profit since the 2022 Russian invasion of Ukraine, which disrupted global supply chain and increased refinery earnings. In premarket trading, shares of the company increased 1.4% to $208,67. Phillips 66’s renewable fuel segment reported a quarterly adjusted profit of $544 million compared to a loss of $133 millions a year ago. After years of margin pressures, U.S. refiners have begun to see better returns on renewable fuels. This is due to a recent rise in the blending of biofuels mandates as well as a rise in diesel prices related to the Middle East conflict. According to data compiled and published by LSEG, Houston-based Phillips 66 posted an adjusted profit of $9.41 for the three months ended June 30 compared to analysts' average estimates of $7.44.
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Hungary and Albania both cut power in the face of Europe's heat
Emergency services in Albania battled a wildfire?in the southern region Mallakaster while?Hungarians?cut back on power consumption due to a heatwave?and drought?that continued to affect large parts of Europe's south and east. This summer, Europe, the continent that is warming up fastest in the world, was ravaged with record-breaking temperatures and devastating wildfires. France and Spain were particularly hard hit. It is now Italy that has been focusing on the heatwave. Temperatures in some places reached around 40 degrees Celsius. It was the heat that prompted the Vatican's decision to move Pope?Leo's weekly general audience, which had been held in St Peter's Square during the July holiday, indoors. Rome visitors welcomed the decision, as they were seeking relief from the hot conditions. A tourist from Mexico named?Diego Amaya said, "I suppose that it is better to have it inside because of the heat." RECORD LOW ON DANUBE Hungarian households and companies reduced their power consumption in the past week following a government appeal to reduce the pressure on the grid due to the severe drought. Budapest, the capital of Hungary, is bracing itself for the heatwave's peak on Wednesday and Thursday. Temperatures of 40 C to42 C (104 F - 108 F) are expected. The Danube's record-low levels have forced Hungary to shut down its only nuclear plant that uses river water for cooling. This has created an energy crisis which has stretched the power supply capacity to the limit. Wildfires in Albania's Mallakaster forced 15 families to evacuate, along with their animals and pets. Ground and aerial crews battled the flames, trying to prevent them from reaching homes near a nearby village. In the rocky, mountainous terrain, south of Gjirokaster, an Albanian city, efforts continued to be made to contain another wildfire. This fire was likely started by lightning. A wildfire in Greece has destroyed thousands of acres of farmland northwest of Athens. The fire was likely caused by electricity conductors vibrating and then fanned with gale force winds. On Wednesday, the fire appeared to be largely contained. However, hundreds of firefighters were still in the area to keep it from re-igniting. Six helicopters also doused scattered smoke spots. The agriculture is suffering from the hot and dry summer. According to an analysis released on Wednesday, Britain's cereal harvest is likely to be the worst since 1984 when comparable records were first kept. This is because the crops have withered after one of the most arid and hot spring-summer seasons on record.
What impact US sanctions against Russian oil companies will have on the Ruble and economy
The Russian currency market may be affected by the U.S. sanctions against Russian oil companies Rosneft, and Lukoil that will take effect on Friday at 1701 GMT.
The rouble strengthened ahead of the deadline on the back of reports that the U.S. had drafted a plan to end the conflict in Ukraine. If implemented, this could lead to the cancellation or the sanctions.
What has been happening on the Russian Forex Market?
Last year, sanctions were imposed on Russia's largest operator, MOEX, in June, and Russia's third largest bank, Gazprombank in November.
MOEX was subject to sanctions, which halted all foreign exchange transactions in dollars and euros. China's Yuan, still traded on MOEX has become the dominant currency.
Since then, western currencies are traded on the open market through domestic dollar accounts that have no counterpart accounts abroad. This trade is used by the central bank to determine its official exchange rate.
In 2024, the rouble will have fallen by 37% compared to the dollar. The main reasons are sanctions and the attack of Ukraine on Russia's Kursk Region.
The rouble rose by up to 45% in 2025's first half due to interest rate increases from the central bank and the hope for a peaceful resolution in Ukraine after U.S. president Donald Trump began talks with Russia.
The rouble remained stable during the second half 2025, despite the overwhelming majority of analysts who predicted that the currency was overvalued and would weaken. Its fair value is closer to 100 roubles per dollar.
Economists attribute the unexpected behavior of the rouble to a slower than expected decrease in interest rates, central bank forex interventions, slow imports as a result of an economic downturn, and the government’s policy to encourage import substitution.
What is the role of Rosneft and Lukoil on the Forex Market?
New sanctions prohibit all transactions between the two Russian companies. Lukoil must sell its foreign assets by December 13. An official of the U.S. Treasury said Thursday that companies buying Russian oil would also be subject to U.S. sanctions.
The majority of oil companies and exporters convert their earnings in foreign currencies, which are now mostly in yuan currency, into roubles to pay for taxes, salaries and other domestic expenses.
Finam, an analyst-driven financial services firm in Russia, estimates that Rosneft, Lukoil, and other oil companies account for as much as 35% of the domestic sales of foreign currencies. They predicted that sales would drop by 10 to 20 percent in early December.
The central bank, which is estimated by traders to have a 10% share of the market, is also a major player. The central bank was a net seller in foreign currency throughout the year, mainly yuan.
The majority of Russian analysts predict a gradual weakening in the rouble's value after the deadline for sanctions due to the reduced forex sales, and the expected reduction in the central bank forex sales starting from 2026.
The key to a successful response is the reaction of China and India
The impact of the sanctions will be determined by the response of the banks and companies of China and India. These countries are the largest buyers of Russian crude oil, with about 85% of sales. The Treasury official stated that Indian and Chinese refining companies are aware of the sanctions, and they're risk-averse.
On November 17, the Treasury's Office of Foreign Assets Control stated that their analysis of the initial impact on the market showed they were "having their intended effect of dampening Russian revenue by lowering the Russian oil price".
On October 23, Russian President Vladimir Putin stated that the new sanctions are "serious" and could have "certain consequences". However, he added that these sanctions will not have an impact on Russia's economy.
China and India, Russia’s partners in BRICS, a group of developing countries, have been cautious about their dealings, for fear of punishment by Western financial regulators.
Impact on Budget and Economy
Taxes on oil production and not exports are the main source of revenue for the Russian budget.
The decline in physical exports due to the new sanctions won't directly affect the budget revenue, but the growing discount between Russian and international blends will.
Calculations showed that in November, the price of Russian oil used to calculate taxes was 24 percent lower than what the budget had estimated. This suggests a further drop in revenue.
The budget revenues from oil and gas have declined by 21% in the first ten months of the year. In the amended budget for 2025, oil and gas revenue will decline by the same percentage throughout the year.
The weakening rouble will increase the budget revenues in roubles from the oil and gas sector, which is a good way to balance the budget.
(source: Reuters)