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CFO of Vale Brazil says that Vale is likely to announce extraordinary dividends in the near future.
Vale will likely announce exceptional dividends in the next few months, said Chief Financial Officer Marcelo Bacci during a Friday call with analysts, following the release by the Brazilian miner of its third-quarter results. The prospect follows stronger-than-expected cash flow early in the year and comes as iron ore prices have consistently held up above $100 per metric ton, Bacci said. Vale, the largest iron ore miner in the world, announced on Thursday that its net profit had increased by 11% over the previous year, exceeding market expectations. The firm's executives said that it is on track to achieve all of its full-year forecasts. When asked whether a Brazilian law that seeks to impose a withholding tax of 10% on dividends would affect potential extraordinary dividends, dividends sent abroad Executives said that they closely monitored developments in order to minimize the impact on shareholders. The executives noted that the impact would be minimal. Bacci said Vale also does not expect to change its policy on expanded net debt in the near future, since the current framework and range is considered suitable for the present conditions. The miner stated that the trend of its net debt expansion is now in the middle of its target range of $10 billion to $20 billion. Gustavo Pimenta, the CEO of the company, ruled out mergers and acquisitions on that same call. He said, "We don't have to do this. We already have the resources." Vale shares traded in Sao Paulo rose by about 2% Friday. (Reporting and editing by Isabel Teles, Marta Nogueira)
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Bulgaria restricts fuel imports into EU after Lukoil sanctions
Bulgaria's Parliament temporarily banned exports of certain fuels to EU members on Friday to ensure stability on the local market after U.S. sanctioned Russia's Lukoil which operates the country's largest oil refinery. Bulgaria announced last week that it would take steps to ensure uninterrupted oil and oil derivatives supplies after the U.S. sanctioned Lukoil, Rosneft and other Russian oil companies over their war in Ukraine. The decision was made by the parliament, which was initiated by the ruling parties. It received 135 votes for, four against, and 42 abstentions. According to BTA, the ban does not apply to the refueling of ships and aircraft, domestic or foreign, and to deliveries to the armed services of member states of the European Union and NATO. The director of customs was instructed by the Parliament to impose the ban on fuel products. He is also authorized to export certain products at his own discretion. The State Agency for State Reserve and Wartime Stocks was also ordered to inspect the quantities of fuel reserves within a week. Lukoil operates Bulgaria's Burgas oil refining plant, which produces 190,000 barrels of crude oil per day. It also runs more than 200 petrol station and has an extensive fuel depot and transport network. Lukoil announced on Thursday that it had accepted a Gunvor offer to purchase its foreign assets. The second largest oil company in Russia was looking to sell these assets after Washington's sanctions.
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Gold prices steady as traders evaluate further rate cuts. Set for third monthly increase
Gold prices held firm above $4,000 per ounce as traders assessed the uncertainty surrounding another interest rate reduction by the U.S. Federal Reserve in this year. However, the metal was poised to make a third consecutive monthly gain. At 10:59 am, spot gold was unchanged at $4.021.86 an ounce. ET (1459 GMT) after dropping to $3,988.37 in earlier session. Prices are on track to increase by 4% in the month of April. U.S. Gold Futures for December Delivery were up 0.2% to $4,024.9 an ounce. Dollar index was near its three-month-high, making bullion priced in greenbacks more expensive for holders of other currencies. Many traders were waiting to reallocate their gold back into the market. "I think they did it below the $4,000 level," said Phillip Streible. Chief market strategist at Blue Line Futures. The U.S. Federal Reserve cut interest rates on Tuesday, but the hawkish comments of Chair Jerome Powell caused traders to reduce their bets for another rate cut in December. The CME FedWatch tool shows that the markets now price a 65% probability of a rate cut in December. This is down from 90% earlier in this week. When interest rates rise, gold loses its appeal as it is not a yielding asset. This metal is up 53% in the past year and reached a new record high on October 20, reaching $4,381.21. Morgan Stanley said on Friday that it still sees gold as a positive investment due to interest rate reductions, ETF purchases, central bank purchases, and the ongoing uncertainty in the economy. The bank anticipates that gold will average $4,300 during the first half 2026. U.S. president Donald Trump announced on Thursday that he would reduce tariffs against China from 57% to 47% in exchange for Beijing crackingdown on the illicit fentanyl market, resumed U.S. soya bean purchases and kept rare earths exports flowing. Palladium rose 1.1%, while platinum fell 1.3%, to $1.590.55. (Reporting and editing by Deepa Babyington and Vijay Kishore in Bengaluru. Reporting by Noel John, Pablo Sinha and Noel John from Bengaluru)
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Dollar climbs following Fed comments and stock gains after earnings
The global stock market was poised to post its third consecutive week of gains, and seventh consecutive month of growth on Friday. Earnings from Apple and Amazon eased concerns over lofty valuations. Meanwhile, the dollar rose after comments by some Federal Reserve officials. Amazon's stock soared by more than 10% following the announcement that cloud revenue grew at the fastest rate in almost three years. This helped the company to forecast quarterly sales exceeding estimates. Apple shares fell 0.3%, to $270.52, after hitting an intraday high of $277.32, after the company reported its quarterly earnings. It also forecasted holiday quarter iPhone sales, and overall revenue, that exceeded Wall Street expectations, thanks to strong demand from iPhone 17 models. The results are the culmination of a week of impressive earnings from several large companies that make up the "Magnificent 7" group. These earnings showed the continued growth of the infrastructure around artificial intelligence. Jake Seltz is the portfolio manager of the Empiric LT Equity Team at Allspring, Minneapolis. We've seen the same thing for several quarters in a row. Just looking at capital spending, and building out some cloud capacity for AI Data Centers across the board. The Dow Jones Industrial Average is the benchmark for Wall Street. Rose 75.26 points 47,597.38; The S&P 500 is a stock market index. Rose 38.30 points 6,860.64; The Nasdaq Composite Index Rose 254.26 points 23,835.40 The Nasdaq is on course for its seventh consecutive monthly gain, the longest streak since Jan 2018. MSCI's index of global stocks rose 2.56 points or 0.25% to 1,007.74. It is on course for its seventh consecutive monthly rise, the longest since August 2021. The pan-European STOXX 600 Index fell by 0.53% following a series of mixed earnings quarters and a benign inflation report for the euro zone that confirmed the European Central Bank’s belief that price pressures are contained. The Bank of Japan also held interest rates at the same level this week, despite predictions from many economists that they would be raised. The dollar has strengthened in recent days after some Fed officials made comments that dampened expectations that the central bank would cut interest rates during its December meeting, following comments by Chair Jerome Powell that cast doubt over another cut for this year. Kansas City Fed President Jeffrey Schmid dissented from cutting interest rates in this week's meeting, citing concerns that high inflation could continue and that signs of inflation spreading throughout the economy might raise doubts as to the central bank’s commitment to the 2% target. Lorie Logan, the Dallas Federal Reserve president, said that the Fed shouldn't have reduced interest rates this past week or in December. The dollar index (which measures the greenback versus a basket currencies) rose by 0.3%, to 99.77. Meanwhile, the euro fell by 0.29%, to $1.1531. The dollar index, which measures the greenback against a basket of currencies, rose 0.3% to 99.77. Meanwhile, the euro fell 0.29% at $1.1531. The Japanese yen gained 0.08% to reach 153.98 dollars. Satsuki Katayama, Japanese Finance Minister, said that the government was monitoring the foreign exchange market with great urgency since the yen dropped to around 154 dollars. The Bank of Japan's (BOJ) expectations of a rate increase are not affected by the latest economic data. Core inflation in Japan’s capital increased in October, and was above the central banks' 2% target. The yield on the benchmark U.S. 10 year notes dropped 1.2 basis to 4,081%, while the yield of the 2-year notes, which moves typically in line with expectations about interest rates for the Federal Reserve fell 2 basis to 3,594%. U.S. crude oil rose by 0.28%, to $60.74 per barrel. Brent rose to $65.05 a barrel on the same day. (Reporting and editing by Andrew Heavens; Marc Jones and Stella Qiu, in London; and David Holmes and Mark Heinrich in Sydney)
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Gold prices steady as traders evaluate further rate cuts. Set for third monthly increase
Gold prices were stable above $4,000 per ounce as traders assessed the uncertainty surrounding another rate cut this year by the U.S. Federal Reserve. However, the metal was poised to make a third consecutive monthly gain. At 9:32 am, spot gold was unchanged at $4.023.44 an ounce. ET (1332 GMT), the price of gold had fallen to $3,988.37 in earlier part of the session. Prices are on track to increase by 4% in the month of April. U.S. Gold Futures for December Delivery were up 0.5% to $4,035.30 an ounce. Dollar index was near its three-month-high, causing greenback bullion to be more expensive for holders of other currencies. Many traders were waiting to re-allocate their gold holdings. Phillip Streible is the chief market strategist for Blue Line Futures. He believes that they did this below $4,000. The U.S. Federal Reserve cut interest rates on Tuesday, but the hawkish comments of Chair Jerome Powell caused traders to reduce their bets for another rate cut in December. The CME FedWatch tool shows that the markets now price a 65% probability of a rate cut in December. This is down from 90% earlier in this week. When interest rates rise, gold loses its appeal as it is not a yielding asset. This metal is up 53% in the past year and reached a new record high on October 20, reaching $4,381.21. Morgan Stanley said on Friday that it still sees gold as a positive investment due to interest rate reductions, ETF purchases, central bank purchases, and the ongoing uncertainty in the economy. The bank predicts that gold will average $4,300 during the first half 2026. Donald Trump, the U.S. president, said that he would reduce tariffs against China from 57% to 47% in exchange for Beijing crackingdown on illegal fentanyl trafficking. He also promised to resume U.S. purchases of soybeans and keep rare earth exports flowing. Palladium rose 1.4% to 1,464.75, while platinum fell 1.7% to $1583.80. (Reporting and editing by Noel John in Bengalur, Pablo Sinha at the New York Times)
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Canada's GDP contracted in August and could avoid a third-quarter recession
Data showed that the Canadian GDP shrank in August, despite a consensus estimate for flat growth. An advance estimate indicated the economy could avoid a recession by the third quarter. Statista Canada reported that the economy contracted by 0.3% during August, following a 0.3% increase in July, which was revised upwards. This effectively negated any growth in the current third quarter. This was the fourth contraction in five month and was primarily due to a decline in the growth of both the goods and services sectors. A preliminary indicator indicated that the monthly GDP was likely to grow by 0.1% in the month of September, bringing the annualized growth for the third quarter up to 0.4%. The estimate may not be accurate. StatsCan publishes the quarterly annualized estimate based on data on industrial production, while StatsCan releases quarterly annualized GDP based solely on income and expenses. Canada can avoid recession if the economy grows in September. A recession is defined as two consecutive quarterly contractions. Canada's GDP shrank by 1.6% in the second quarter as tariffs and trade uncertainty slowed exports. Michael Davenport is a Senior Economist with Oxford Economics. He said that the Canadian economy was on the brink of a major recession. Some economists believe that the federal budget next week could boost spending and demand, and grow the economy. After the release of the data, the Canadian dollar continued to weaken and traded at 1.4022 U.S. dollars or 71.32 U.S. Cents. The yields on government bonds with a two-year maturity fell by 1.5 basis points, to 2.397%. Data showed that the manufacturing sector, which has been hardest hit by U.S. Tariffs and represents almost a 10th of GDP, contracted 0.5% in August. The largest drop was in the mining, oil and gas extraction and quarrying industries, which decreased by 0.7%. This was primarily because of a 1.2% decline in metal ore and a 5.0% drop in coal mining. In the services sector the biggest contractions occurred in the transportation and warehouse sectors, partly due to an airline strike. The decline in this sector was partially offset by growth in real estate, retail trade, and rental and leasing.
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Acerinox praises recent EU actions and urges adoption
The head of Spanish steelmaker Acerinox, who is also the CEO of the European Commission, praised the recently announced steel import quotas on Friday but stated that the company was working hard to ensure the measures are adopted sooner. On a conference call with analysts, Chief Executive Officer Bernardo Velazquez stated that the company is pushing to speed up the process. He suggested the measures could be implemented as soon as April 2026 before the current ones expire on June 30. Velazquez stated that "we are very close to getting the protection we have been dreaming of and asking for over the years." He was referring to U.S. steel tariffs at 50% and EU import quotas. Velazquez said that the measures would put Acerinox in a position of equal footing with non-European rivals. Steelmaker has been adamant about what it believes to be global overcapacity, and the pressure of cheap Asian imports that underprices European firms. "MORE REGIONAL FURTURE" Acerinox missed its third-quarter earnings estimates, but Chief Corporate Office Miguel Ferrandis stated that the company was on the verge of recovery as tariffs are driving up stainless steel prices in America. Ferrandis said that the "green shoots", or signs of recovery in Europe were not yet visible, particularly as Asian players increased exports to prepare for EU measures, and imports grew 36% between January and August. Velazquez said that the company is preparing to have a more regional future in response to changes in trade policies. He gave the example of reducing the reliance on exports in South Africa and increasing local sales. In the past, (the output was) 70% local and 30% export. Velazquez stated that the goal is to have more than 60% local and 40% export. (Reporting and editing by Anna Pruchnicka; Javi West Larranaga)
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El Salvador's 'plague of water lettuce' threatens livelihoods of thousands
Alberto Castillo abandoned a boat at the shores Lake Suchitlan in July. Water lettuce had overtaken the largest lake in El Salvador, and he could no longer take tourists or fish around it. The invasive species has affected thousands of families who live near the lake. Satellite images taken in early October reveal that the plant has covered nearly the entire lake, which is 135 square kilometers (52 square miles). Fundesyram in El Salvador, which is cleaning the reservoir, estimates 80% of it is affected. The reservoir was built in the 1970s for the country's main hydroelectric power station. The spread of the plant has been accelerated by pollution, rain, and nutrients flowing from different tributaries. The wavy lettuce leaves have spread, forming a dense mat which blocks oxygen entering the water. This kills fish, submerged plants and makes it difficult for boats to navigate the water. According to the data of the confederation artisanal fisheries cooperatives, the spread of the species has forced 3,000 fishermen from the lake. The local economy has also suffered a loss of at least $1.3million. Due to a decline in tourism, restaurants near the lake have reduced staff. Locals call water lettuce "the plague." Hundreds of residents, soldiers and government workers are cleaning the lake to remove the lettuce which is not edible for humans. The lettuce invasion continues despite the fact that some areas have been cleared and are cordoned off with steel cable to prevent it from returning. Castillo stated that "we don't have tools to stop an epidemic as large as this plant." Castillo said, "We cannot fight nature."
Venezuela rushes to mend Iran relationship as US sanctions loom
Iran and Venezuela are attempting to spot together an oil alliance that began to fray last year, according to six people acquainted with the matter, after the South American nation fell behind on oil swaps that had enhanced crude exports and assisted stem domestic fuel lacks.
The expected April return of U.S. sanctions on Venezuela's. oil market will make the Iran alliance vital to keeping its. lagging energy sector afloat. Washington in 2015 momentarily. unwinded sanctions on Venezuela's promise to permit a competitive. governmental election, something that has actually not occurred.
The scenario is growing alarming. An evaluation of shipping data and. documents from Venezuela's oil company PDVSA show that Venezuela. fell back in payments to Iran, a deficiency that intensified when. the U.S. started to release licenses in late 2022. Those. authorizations triggered the state firm to reassign freights. originally prepared for Iran to cash-paying customers.
To salvage the partnership, Venezuela is rushing to satisfy. terms of a three-year-old alliance that has actually involved numerous. countless dollars in oil swaps and contracts. The country is. attempting to settle pending financial obligation by speeding up shipments of. heavy crude and fuel freights to Iran.
Venezuela likewise is aiming to renegotiate lots of. unfinished tasks from agriculture to car manufacturing before. Iranian President Ebrahim Raisi gos to Caracas in the coming. months, individuals stated.
Two previous Iranian delegations that took a trip to Venezuela. considering that mid-2023 left without significant agreements announced, on. the guarantee that Venezuela would catch up on payments.
Regardless of coming across challenges, especially in regards to. payments by Venezuela, both nations stay undaunted in their. dedication to fortify their relationship and enhance their. energy partnership in the face of American pressure, said a. senior Iranian official.
Venezuela's oil minister Pedro Tellechea in February. acknowledged the scruffy relationship, stating PDVSA would. conduct its own upkeep for refineries and petrochemical. plants this year, something that was an essential part of the 20-year. deal with Iran.
We are completing the upkeep programs with our. workers, he said at a rundown at a fuel distribution plant in. main Carabobo state.
The home-grown work follows the completion of a. 110-million-euro overhaul by Iranian technicians at Venezuela's. tiniest refinery that was to be reproduced in 2015 at the. country's largest refining complex, Paraguana. That would have. generated much needed new processing equipment from Iran and. China to change aged, U.S.-made equipment.
Venezuela's and Iran's Foreign Affairs ministries and PDVSA. did not respond to requests for information on the status of the. relationship between the countries.
MONEY OVER OIL SWAPS
Minister Tellechea likewise stated last month PDVSA has actually found out to. handle U.S. sanctions and is much better prepared to deal with any. scenario with a stable of qualified workers and enhanced. functional facilities.
PDVSA's lack of vessels, frequent export terminal power. blackouts and poor-quality petroleum had left Venezuela struggling. to complete its side of the Iran deal at the planned pace. More recently, the easing of U.S. sanctions has actually progressively led. Caracas to prioritize selling its oil to other nations, cutting. into its swaps with Iran.
The initial contract from 2021 needed PDVSA to deliver. to Iranian state business at least 2 barrels of oil for each. one gotten. Iran last May stopped sending cargoes to. Venezuela, according to an evaluation of PDVSA's delivery documents,. after PDVSA fell behind. Caracas has given that dedicated to sending. at least one-cargo a month to Iran to minimize the deficiency.
Iran's supply of crude and condensate to Venezuela in between. 2022 and 2023 fell 44% to some 41,300 barrels each day (bpd),. while Venezuela's crude and fuel supply to Iran, which was. supposed to be two times as much as it received, fell a larger 56%. to 39,400 bpd, according to a evaluation of PDVSA's. files detailing cargoes from mid-2021 through February 2024.
The overall volume exchanges fell by half in 2015 as. Venezuela struggled to recuperate lost oil output, resolve quality. and facilities problems, and meet supply commitments with. all of its consumers.
Because the second half last year, PDVSA has actually slowly amortized. financial obligation by delivering one big cargo of heavy crude monthly. But. Iran has not resumed its supply, forcing the state company to. try to find other sources of oil including Russia, shipping data. and the PDVSA's documents revealed.
The Venezuela-Iran contract had likewise included providing. Iranian state-owned refiner NIORDC obligation for a revamp. of PDVSA's huge 955,000-barrel-per-day Paraguana Refining. Set to involve worker training in Iran, the building and construction. of temporary housing for Iranian technicians in Venezuela and. joint budget plan preparation for equipment imports.
But the task never ever progressed beyond the preliminary phases. as PDVSA's inadequate payment capacity and the deep. degeneration of infrastructure discovered in examinations developed new. barriers to conquer a currently weakened relationship. PDVSA is. now thinking about other companies, consisting of from Brazil, for. later on refinery repair work, leaving the planned NIORDC-led overhaul. in a drawer, two of the sources stated.
NIORDC did not comment on the matter.
COOPERATION CUT SHORT
The Iran-Venezuela pact projected approximately $25 billion in trade. and investment because 2022 in essential locations for both nations.
Despite the fact that leading officials have taken a trip in current months in. an effort to renew joint services, the worth of ongoing. organization represents less than $10 billion in total, one of the. sources stated.
We have actually wasted time, said another source, referring to an. audit in October showing a 168-day delay in essential jobs. including 18 companies that have yet to be completed.
The revisions that parties are now making from everything are. obligatory, the person said, referring to task inspections by. Iranian and venezuelan authorities and workers ahead of the. Iranian President's check out.
Everything related to Iran has faded. We just see companies. licensed by the U.S. to do organization in Venezuela. Some. imported spare parts are showing up, but they are American, a. refinery employee stated.
(source: Reuters)