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Congo sticks to export quotas but wants to boost cobalt processing
The mining minister of the Democratic Republic of Congo said that the country will adhere to the recently announced cobalt export quotas. Any revisions in the future would only be possible if the government deems it necessary. In an interview conducted on the sidelines a New York seminar, the mining minister of Zambia, Louis Watum Kabamba said that his country was more interested in investing in cobalt processing locally to increase its export value. "We can't let others decide for us. It is not important whether there will be or won't be a cobalt stockpile. "The most important thing is to get a fair price," Watum stated after participating in the seminar hosted by the Cobalt Institute. Congo, which supplied 70% of the global cobalt demand in 2024 will replace a February export ban with a quota-based system starting October 16, to manage supply and influence prices. The Congo will allow miners to export up to 18,125 tonnes of cobalt in the remainder of 2025. This is followed by annual caps of 96.600 tons for 2026 and 2027. Glencore, the second largest producer in the world, is in favor of an export quota, while CMOC, China's top producer of key battery materials, is against it. The total quota does not match CMOC's capacity to produce. "We won't be controlled by China or anyone else but ourselves." Watum stated that a country that supplies 70% the cobalt in the world has a right to decide on price. He said that future revisions of the quota system are possible, but no date has been set. Watum said that the government would continue to take concessions away from companies who fail to develop assets.
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Aurubis begins production in US copper recycling facility
Aurubis AG, Europe’s largest copper manufacturer, announced on Wednesday that it had begun production at its newly constructed U.S. Metal Recycling Plant at Richmond, Georgia. Aurubis stated that the plant would reduce the need for U.S. imports of metals. Production is expected to reach its full capacity by the first half 2026. The plant, which will invest about $800,000,000, will be able to process 180,000 tons of complex recycling waste material each year, including printed circuit board, copper cable, and other metal bearing products. The production will include 70,000 tonnes of high-grade blister-copper with a purity of 98-99%, as well as nickel, tin and precious metals. Aurubis' spokesperson stated that the company intended to sell copper to U.S.-based customers. This will allow us to meet the increasing demand for strategic metals like copper in the U.S. Copper demand in the U.S. is currently around 1.8 millions tons per year. Around half of this amount is imported. Aurubis stated that the Richmond plant would be an effective way to reduce copper imports. Aurubis Richmond's blister copper can be further processed in Europe into high purity copper and copper products by Aurubis international smelting networks. Aurubis CEO Toralf Haag stated that the company could consider additional projects in the United States. Haag stated, "With its high recycling materials and favorable local conditions, Aurubis offers attractive prospects on the American market that we will continue considering closely in the future." Michael Hogan is the reporter. Mark Potter (Editing)
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Europe stocks fall; commodity and defence rallies offset luxury losses
Investors analyzed the latest signals from Federal Reserve chair Jerome Powell as European stocks fell on Wednesday. The pan-European STOXX 600 ended 0.2% lower while regional bourses mixed. The French benchmark was the worst performer, falling 0.6%. Basic resource sector rose 1.8%, as copper prices reached a 15-month-high, and crude prices reached a three week-high, driving the energy sector to rise 1.5%. Anglo American surged by 4.7% following Endiama Bid for a Minority De Beers, the diamond mining unit of De Beers. Defense stocks rose between 3% to 8%, including Rheinmetall Hensoldt, and SAAB after U.S. president Donald Trump stated that he believes Ukraine can retake its occupied land by Russia, and that Kyiv must act immediately. STOXX600 gains were held back by losses in luxury stocks like LVMH Hermes Richemont EssilorLuxottica. The subindex of luxury stocks fell 1.5%. Healthcare stocks fell 0.6% with AstraZeneca, Roche and other heavyweights down by 2% and 0.4 respectively. Bloomberg News reported on August 1 that Washington has formalized the lower auto tariffs. Wall Street stocks fell as investors digested Powell's remarks which provided little clarity about the Fed's future interest rate policy. According to the CME FedWatch Tool, traders are betting that there will be at least one rate cut in this year. The odds of a move in October topping 94%. Last week, the Fed announced its first rate cut since 2025. This sparked a global rally that lifted European and U.S. stocks. But after a strong start to the year -- fueled by gains in defense stocks -- European shares have lost momentum, trailing their U.S. peers amid a relentless artificial-intelligence-driven rally that has pushed American benchmarks to record highs. The Fed could become more dovish at the December meeting, because restrictive monetary policies can worsen employment and inflation upside risks are not materializing. Elias Haddad is a senior market strategist with Brown Brothers Harriman. The STOXX 600 is about 2% below its peak in March, and has gained about 9.2% so far this year. The S&P 500 is up close to 13%. Lanxess' stock fell 6.6% when Deutsche Bank lowered its rating from "buy" to "hold". The German business mood showed a surprising decline in September, as the economy remained weak.
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Gold falls from record high; markets watch US economic data
The gold price eased Wednesday, as the U.S. Dollar firmed. This was a retreat from the record high reached in the previous session. Investors remained glued to their screens, awaiting economic data that will be released later this week. These figures should provide further clues about the Federal Reserve’s policy direction. As of 11:53 am, spot gold was down 0.5% at $3,744.19 an ounce. After hitting a record-high of $3,790.82 in the early hours of ET (1553 GMT), gold prices fell 0.5% to $3,744.19 per ounce. U.S. Gold Futures for December Delivery declined 1% to $3.776.50. Dollar-priced gold is now more expensive to holders of other currencies due to the 0.6% increase in the U.S. Dollar index. The 10-year Treasury yields have also moved higher. Gold is still digesting the comments made yesterday by the Federal Reserve and the geopolitical tensions in Russia... "We're a little cautious before some economic data is released," said Phillip Streible. Chief market strategist at Blue Line Futures. Jerome Powell, Fed chair on Tuesday, did not offer any new clues about the future direction of interest rates. He stressed that the central banks must carefully balance risks of stubborn inflation with a slowing of the job market. According to CME FedWatch, the markets are pricing in an additional two 25-basis point rate cuts in this year. One is expected in October and has a 94% chance of happening. The other will happen in December. The focus is now on the weekly U.S. unemployment claims data due out Thursday and the U.S. employment report scheduled for Friday. The Fed's preferred inflation indicator is the Personal Consumption Expenditures Index. Ukraine's military announced on Wednesday that it had struck two oil pumps overnight in Russia's Volgograd Region. Gold becomes more appealing during times of geopolitical or economic uncertainty. Gold is also a non-yielding investment, so it tends to do well in low interest rate environments. Spot silver dropped 0.3% per ounce to $43.89 Palladium fell by 0.2% and platinum dropped 0.5%. (Reporting from Noel John, Bengaluru. Additional reporting by Kavya Baliaraman. Editing by Shilpa Majumdar and Shalpa Kuber.
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California Attorney General Bonta: More Trump and plastics lawsuits are coming, says Bonta
California Attorney General Rob Bonta announced on Wednesday that his state will continue to sue Trump's administration for its aggressive deregulatory measures on environmental regulations. He also said he was looking into more lawsuits related to deception surrounding plastics recycling. Bonta said, "Every time they break the law, it hurts my state and my people. We will sue, we'll take them to court." "So far, that's been more than one per week." He said that "we definitely have more suits planned". California's strategy is to counteract the administration's rapid rollbacks in environmental policies and its push to expand fossil-fuels. In his speech at the United Nations General Assembly, Donald Trump, the U.S. president, dismissed climate change on Tuesday as "the biggest con job in the history of mankind". He reaffirmed his doubts about mainstream climate science, and his opposition to the use of renewable energy. Bonta said in an interview that he was looking at "the many actions" that were being taken in order to adopt this pro fossil fuel 'head in the sand' approach when it comes climate change and climate sciences, a position which results in a number of rollbacks to positions that the Biden Administration held that he believed to be sound. This includes focusing on potential violations by federal agencies of the Administrative Procedures Act. Bonta led a coalition earlier this week of 23 attorneys general, seven counties, and cities to sign a letter in opposition to the Environmental Protection Agency’s proposal that it revoke its 2009 findings on greenhouse gas emissions. This finding was the foundation of federal regulations regarding greenhouse gases. The public comment period ended on Monday, and the EPA may issue a final regulation later this year. This could open the agency to lawsuits. Bonta responded that his office would weigh the risks. When asked if California would sue over the rescission knowing the case could be heard by the Supreme Court which, in recent years, has favored the Trump Administration on environmental cases of major importance, Bonta replied that they will consider the risk. If the Supreme Court affirms the rescission it may make it more difficult for future administrations to adopt a new finding of endangerment. "We want stop illegal actions that we believe we have a good chance to stop, based on facts and law." He said that sometimes that means going to federal courts, and that there is a possibility of us proceeding to the intermediate appellate court or US Supreme Court. EXXON JUDGEMENT DATE Bonta said that the state would continue to focus its attention on major fossil-fuel companies and will bring more lawsuits relating to plastic recycling. Bonta, a U.S.-based oil company, sued ExxonMobil in September 2024 for what he claimed was a decade-long campaign of deception to mislead consumers about the recycling of plastic products. He also claimed that the reality is that only a small amount of plastic waste produced in the U.S. is recycled. Exxon sued Bonta in January for defaming the company and its advanced plastic recycling programs. They also claimed that he was connected to a competitor. Bonta believes that Exxon is trying to delay the "judgement date" of the legal process. He said, "We have a lot behind us in terms of investigative material." "We believe it is very strong, and we are confident that we will prevail." Bonta refused to comment on whether settlement talks were underway in either case. Exxon did not respond to a request for comment. PROCESSED FOODS Bonta's office also cited ultra-processed food, which has been under fire recently over allegations that many popular packaged foods have been engineered for addiction, as a "issue of great importance" but declined to make any comments on any ongoing investigations. Researchers consider many packaged snacks, sweets, and soft drinks that contain substances synthesized or extracted from whole food sources to be ultra-processed. Robert F. Kennedy Jr, the Health Secretary, has targeted these products as contributing to childhood obesity and health problems. Bonta stated that "Ultra processed foods are a serious problem." Bonta said, "But there's really good science behind this. That's where we begin, with facts and science, and then go from there."
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U.S. Treasury Bessent to NYC regarding any bailout: "Drop dead"
Treasury Secretary Scott Bessent stated on Wednesday that the Trump administration would not bail out New York City if Democratic candidate for mayor Zohran Mamdani followed through with his plans. Bessent told Fox Business Network that if Mamdani's plans were implemented, New York City would be asking the federal government to bail them out. Bessent replied, "It would be the same as Gerald Ford saying: 'Drop Dead'." The phrase was used in a New York newspaper headline to describe the moment when, in 1975, the Republican President refused to save New York from bankruptcy. Mamdani’s office didn't immediately respond to a request for a comment on Bessent’s remarks. Bessent called Mamdani his socialist protege, a reference to his social media sparring companion, Democratic Senator Elizabeth Warren. She spoke this week in opposition to any possible bailout of Argentina's Government by the Trump Administration. The Treasury Secretary did not specify the Mamdani plans that he believed could cause financial problems. Mamdani, who won the nomination of his party in a primary on June 24, with 56% votes, is the leading candidate for the November elections. Rent freezes, free city busses, city-owned groceries and free childcare are among his proposals. These will be paid for through a combination of corporate tax increases and an additional 2% tax on New Yorkers who earn more than $1,000,000 a year. Bessent appeared on Fox's morning show "Mornings With Maria." Reporting by Doina chiacu, Editing by Peter Graff
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TSX gains as energy shares rise
Canada's benchmark index climbed on Wednesday, helped by energy stocks, after it crossed the 30,000 point threshold for the second consecutive day. Toronto's S&P/TSX Composite Index, which is heavily influenced by commodities, rose 0.3% to 29.912,19 points at 10:20 a.m. ET (1420 GMT). The S&P/TSX Smallcap Index rose by 1.1% following reports that the Trump Administration is looking to acquire an equity stake as high as 10% in Lithium Americas. This boosted the Canadian company’s shares by 88%. Its U.S.-listed shares jumped 85%. J.P. Morgan analysts wrote in a report that it was unclear whether or how the DOE loan would be renegotiated, and if any legal implications will result. It's hard to estimate the fair value of a 10% stake in a government company, especially when there are still unanswered issues such as how revised offtake agreements could be structured. Vermilion Energy, a company that specializes in energy stocks, grew 4.7%. Energy stocks led the sector with a 2.3% increase. First Quantum Resources and Teck Resources both saw their materials stocks rise by 6% and 5.5% respectively. Hudbay Minerals, which has seen its shares rise 6.7% after announcing that the temporary closure of its Peru mill will not affect their ability to meet production and cost ranges for 2025, said it would not be affected by this. The technology shares recovered after a dip during the previous session. Open Text Corp. and Constellation Software both rose by 4.6% and 3.3% respectively. BlackBerry also gained a little ahead of its quarterly results. According to a recent estimate, Canada's factory sale likely fell 1.5% in August as a result of lower sales in the transportation equipment and food products subsectors. Mark Carney, the Prime Minister of Canada, said that he held "constructive" talks on trade with Premier Li Qiang in China as both countries sought to resolve trade disputes. Carney also said that trade negotiations were still ongoing with the U.S., and the remaining issues would be addressed in a review of the U.S. Mexico-Canada Trade Agreement. (Reporting and editing by Twesha Dhikshit)
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Saudi stocks jump the most in five years after a report of an easing of foreign ownership restrictions
Saudi Arabian stocks rose the most on Wednesday since 2020, after a report that suggested the regulator of markets may relax rules limiting foreign ownership in listed companies. Bloomberg News reported on a possible easing of the cap on foreign ownership in listed companies. This could revive interest in the Arab World's largest stock exchange. In a report, CMA board member Abdulaziz Abdulmohsen Bin Hassan said that the law could be implemented before the end the year. According to UBS's projections, the move could result in an additional passive inflow of $9.5 billion to $10 billion from MSCI and FTSE trackers if it is implemented at 100%. Victor Martin, UBS's head for portfolio trading, EMEA, explained that the move would bring an extra $9.5 billion to $10 billion to Saudi Arabia. Saudi Arabia's benchmark index has fallen 9.6% this year. This is a significant underperformance compared to other regional markets, such as Dubai or Kuwait, which have seen gains of 13.8% and 20.0%, respectively. The lower oil prices are largely responsible for the decline. Saudi Aramco, one of the largest blue-chip stocks in the kingdom, has struggled to maintain gains since 2025. Mohammed Ali Yasin is the CEO of Ghaf Benefits at Lunate. He said: "We know that despite the 49% foreign ownership cap, foreigners never own more than 15% of the company on average." He said that the rally on Wednesday reflects the expectation that an easing in rules will increase the weighting of Saudi public companies within the larger MSCI and FTSE indices, thereby increasing foreign investment into these shares. Tariq Qaqish said, "This will also increase liquidity and depth on the Saudi market. It will also tighten spreads between bid and ask and expand participation by institutions." Tariq is deputy CEO at FH Capital Abu Dhabi. Saudi Arabia is trying to attract foreign investors by establishing exchange traded funds with Asian partners, including Japan and Hong Kong. In January, the regulators also allowed foreigners to purchase listed companies that own real estate in Mecca or Medina without changing restrictions regarding direct land ownership. Yasin said that the fall in Dubai and Abu Dhabi stocks of more than 1 percent on Wednesday could be a response to possible Saudi regulatory changes. Federico Maccioni, Hadeel al Sayegh and Kirby Donovan edited the report.
Goldman Sachs believes gold prices will surpass $4,000 in the future if investors increase their buying.
Goldman Sachs has said that gold prices may rise well above the $4,000 per troy-ounce baseline in mid-2026 if private investors increase their investment.
On Wednesday, spot gold prices reached a record-high of $3,578.50 an ounce, on the expectation of a U.S. Federal Reserve rate cut this month. Meanwhile, global uncertainty remained a major factor in driving demand for safe havens.
Goldman Sachs stated in a Wednesday note that "Gold is our strongest long-term recommendation."
The forecast assumes that central banks will continue to buy gold, which would result in a price of $3,700 per ounce by the end 2025, and $4,000 per ounce by mid-2026. This baseline view, however, does not take into account a significant shift in private investor sentiment from U.S. dollars to gold. A scenario like this could drive prices as high as $4.500 per ounce. The report also stated that the loss of Fed autonomy could lead to higher inflation, an increase in long-end bonds yields, a weakening of equities and a decrease in the dollar’s reserve currency status. Gold, however, would benefit as it is not dependent on institutional trust.
Donald Trump, the U.S. president, has increased his efforts to exert influence over the Fed. The Fed's ability to effectively manage inflation is widely viewed as requiring independence from political influences over interest rate decisions.
Goldman Sachs estimated that if all other factors remained constant, the gold price could reach $5,000 per troy-ounce if just 1% of private money invested on the U.S. Treasury Market was reallocated into gold.
(source: Reuters)