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Minister: Chile will reduce green hydrogen production goals amid global slowdown
Diego Pardow, Minister of Energy for Chile, said on Wednesday that the country will reduce its green-hydrogen production targets due to a decline in global market prospects. Pardow, in an interview during Energy Week Santiago, said that the adjustment will be published before March 2026, the end of current administration's term. He said that "the international market for green hydrogen has cooled down a bit." The reduction would be in line with European nations that have reduced their goals. This trend is mirrored by developers all over the world who are cancelling their projects and reducing investment. Pardow stated that several green hydrogen "commercial scale" projects have either received or are on the verge of obtaining environmental permits. TotalEnergies, HIF Global and other companies are working on green hydrogen projects across the country. The government has said that about 40 billion dollars worth of projects are currently being assessed for their environmental impact. Pardow stated that the government has not yet decided whether or not to terminate a concession in the capital by an Enel unit. However, a date for a decision is set. Enel was accused by the government of taking too long to restore power in Santiago following a storm that occurred in 2024. (Reporting and writing by Fabian Cambero, Alexander Villegas, Kylie Madry).
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Sources: Sanctioned copper company UMMC is in talks with state-seized gold mining firm UGC to buy it.
Two industry sources said on Wednesday that the Russian copper producer UMMC was in talks with the Russian government about acquiring a majority stake of the gold mining company UGC, which the state had seized in July. Sources confirmed a report in the Izvestia paper that said a company called Atlas Mining, which holds certain UMMC assets is negotiating the acquisition with the Finance Ministry. Neither the UMMC nor Finance Ministry responded when asked for comment. In July, the Russian general prosecutor’s office won a case to transfer the ownership of UGC, Russia’s fourth largest gold producer, to state. They claimed that it was acquired "through corruption." Formerly owned by Russian billionaire Konstantin Strukov who bought gold-producing assets from a bankrupt Soviet era company in 1997 at a bargain-basement price. Since the beginning of the military operation in Ukraine, the Russian state has taken over $50 billion in assets from Western companies and Russian owners. This is the largest redistribution in Russia since the privatisation of property in the 1990s. These seizures have been justified by the government and courts for a variety of reasons, ranging from illegal acquisitions to national security. The government has pledged to sell some assets. Sources said that other bidders had previously expressed interest in UGC assets but were no longer interested. Sources said that there would be a formal bid process but the outcome was "predetermined." Both UGC and UMMC fall under Western sanctions. The shares of UGC, one of the biggest public offerings in Ukraine since the beginning of the conflict, dropped by 8% on Tuesday due to fears that its shares could be delisted. This was described by a third party as a fear of possible delisting. Izvestia cited anonymous sources to report that the government was seeking 100 billion roubles (US$1.23 billion) in exchange for its stake in UGC. UMMC offered half of this amount. UMMC announced in 2022, that the previous owners of its company, billionaires Iskander Mahmudov and Alexei Bokarev no longer owned shares. The company has not disclosed its current owners. In September, the Finance Ministry announced that it planned to sell 67% of its stake in UGC by the end October following an evaluation. According to UMMC, the website, Gazprombank holds 22% of UGC and minorities own the rest. (Additional reporting and editing by Darya Corsunskaya, Elena Fabrichnaya, Gleb Bryanski)
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Gold hits record price as US Government Shuts Down
Wall Street and dollar fell on Wednesday. Gold reached a new record high. The U.S. Government shut down most of its operations delaying the release crucial employment data that could cloud the outlook for interest rates. The U.S. data on private payrolls showed that employment in the U.S. fell by 32,000 jobs last month. This was against expectations of a 50,000 increase. It added to fears that the U.S. labor market could be weakening. The government shutdown has muddied the outlook this week. While weak employment numbers would normally add to bets for interest rate reductions that could support the equity markets, it is not uncommon for investors to place bets in anticipation of a cut. Due to the government shutdown, the Labor Department will not publish its more comprehensive and closely followed employment report for September on Friday. Investors said that this would make it difficult for the Federal Reserve to evaluate the U.S. economy as they weigh potential rate cuts. Matthew Miskin is co-chief investment strategy at Manulife John Hancock Investments, Boston. "Not having any other data makes this difficult for the Fed." The agencies have warned that the shutdown of the federal government will result in the furloughing of 750,000 workers, at a cost of $400,000,000 per day. The Dow Jones Industrial Average remained flat, while the Nasdaq Composite dropped 0.3%. The MSCI All-World Index.MIWD00000PUS was unchanged due to Wall Street's lagging performance. Gold prices rose to $3,895 per ounce amid the uncertainty. This was a new record for a third consecutive session. The benchmark 10-year Treasury yield dropped 4 basis points to 4,1097%. The STOXX 600, the pan-continental index of European shares, rose 1.1% and hovered near a new record high. The FTSE 100 in Britain and the SMI in Switzerland outperformed. Healthcare stocks boosted their performance, as they hoped to avoid high U.S. tariffs on imports following President Donald Trump's agreement with Pfizer regarding prescription drug prices. In the STOXX 600, the healthcare sector is ranked third. Lars Skovgaard is senior investment strategist for Danske Bank. He said: "There are a lot political risks in the healthcare industry, but once you see these risk diminish, investors will buy." I think that this could support European shares in the next few days. SLOW DOWN TO Delay Data Investors may give greater weight to the ADP National Employment Report if Friday's nonfarm payrolls data is not released. George Lagarias is the chief economist of Forvis Mazars. He said: "These things are short-term, but not long-term, and markets know that." The lack of data means we will assume that the current trend will continue. If there's no sign of a strong recovery in the economy, the Fed is likely to continue its current course. The futures market now indicates a 95% likelihood of a Fed rate reduction in October. This is up from 90% a day ago, and there's a 75% chance that another move will be made in December. Anthony Saglimbene is the chief market strategist for Ameriprise. He said that, if the shutdown continues, mid-October inflation reports could be affected. In a note, he stated that "an extended period when the U.S. Bureau of Labor Statistics was not fully operational could impact data collection efforts for the other reports and may affect the quality of data." Japan's Nikkei fell 0.9% on Tuesday after an 11% increase in the previous quarter. South Korea's stocks rose by 0.9% to add to their 11.5% gains in the previous quarter. Data showed that exports in September rose at the highest rate in 14 months. DOLLAR FALLS The dollar index fell for the fourth day in a row on foreign exchange markets. It was down by 0.24% at 97.608. The euro increased by 0.1%, to $1.1735. Sterling rose by 0.4% to $1.3503. The dollar fell 0.6% to 147.06 Japanese yen after a Bank of Japan report showed that confidence among large Japanese manufacturers had improved for the second quarter. This increased the likelihood of an interest rate increase as early as this month. After two days of declines, oil prices dropped further as investors weighed up potential OPEC+ plans to increase output next month. U.S. crude fell about 1% to $61.77 per barrel while Brent dropped 1% to $65.39.
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Kuwait raised over $11 billion in bond sales as investors pile into Gulf debt
Kuwait, the world's largest oil producer, has raised $11.25bn from a three part bond issue, which attracted a large number of investors for its first U.S. Dollar issue since 2017. This marks a strong return on global debt markets following years of political gridlock in Kuwait. The Gulf State was the last sovereign in the region to tap into the bond market. Strong global appetite for bonds and low borrowing costs enable governments to diversify their funding sources and plug budget deficits, as well as invest in economic diversification. Kuwait sold $3.25bn in a portion of three years at 40 basis points above U.S. Treasuries. $3bn in a portion of five years at 40 bps and $5bn in a portion for ten years at 50 bps. Fixed-income news service IFR reported that the order books at launch were more than $23 billion, allowing pricing to be tightened from initial guidance. 2.5 TIMES OVERSUBSCRIBED Kuwait's Finance Ministry said in a press release that the transaction had been 2.5 times oversubscribed with an order book reaching a peak of $28 billion. In a statement, acting Finance Minister Sobeeh al-Mukhaizim stated that "this landmark issuance is testament to the confidence of the global market in Kuwait's fiscal power". This transaction strengthens Kuwait's global credibility and our relationship with international investors. Investors were reassured by the low level of debt in Kuwait, despite concerns over its governance, public finances and oil dependency. Justin Alexander, Gulf analyst at GlobalSource Partners and director at Khalij Economics, confirmed this. Kuwait's estimated sovereign wealth assets are more than $1 trillion. Kuwait does not reveal exact figures. In March, it passed a new law on public debt after the old one expired. The borrowing limit was raised to 30 billion dinars (98 billion dollars) from the previous 10 billion dinars and the option of longer terms for borrowing was also included. Kuwait's directly-elected parliament and appointed governments have been in conflict for years, preventing the passage of this law as well as other reforms. Last year, the emir disbanded parliament for up to 4 years. This allowed the government to implement reforms. Oil revenue was almost 90% of the government's revenue last year, despite plans to diversify away from hydrocarbons. Reporting by Rachna uppal and Ahmed Hagagy. Jamie Freed, Mark Potter and Mark Potter edited the report.
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Duke Energy's Carolinas Energy Plan includes nuclear reactors and coal extension
Duke Energy, a U.S. energy company, is looking at adding large nuclear reactors and extending some coal plants' lives as part of its long-term plan to meet the rapidly increasing electricity demand in the Carolinas. U.S. electric utilities are increasing their power infrastructure plans in order to accommodate the rapid growth of electricity consumption. This is driven by AI data centres, the electrification and modernization of buildings, transportation, as well as the resurgence of domestic manufacturing. Nuclear energy has been rediscovered due to the recent increase in electricity consumption. It produces electrons around-the clock that are almost carbon-free. Kendal bowman, Duke Energy North Carolina's president, said that the energy demand over the next fifteen years is expected to increase at an eight-fold rate compared to the previous 15 years. Duke's 2025 Carolinas Resource Plan, which outlines the company's strategy up to 2040 and updates its 2023 plan that covered energy requirements through 2038, was submitted on Wednesday. Plan includes a proposal for the study of the additions of large light water reactors and small modules reactors. Potential sites include Belews Creek, North Carolina, and the W.S. Lee site in South Carolina. Duke targets a date of 2037 for the new nuclear generation to be in service. Duke would build new reactors in the next decade if it moves forward with its nuclear plan. The proposal comes against the backdrop of record-high power consumption and President Donald Trump's efforts to reduce incentives for solar and wind development, while promoting nuclear and fossil fuels. Duke will request extensions between two and four year for coal plants that have dual fuel capability. Duke cited recent changes in federal policy. The company still plans to retire its coal fleet, as new resources become available. Glen Snider is Duke's director of integrated resources planning. Duke Energy is the U.S.'s largest nuclear power operator and one of the nation's biggest coal plant operators. The company plans to double its capacity of battery storage from its earlier projections, to 5,600 Megawatts (MW), by 2034. It will also maintain its target of 4,000 MW solar power. The company claims that wind power is not economically viable for its customers until 2040. Utility plans to increase its natural gas fleet by adding two combustion engines to the five combined-cycle units that were proposed in 2023. The utility will increase the storage of liquefied gas to improve reliability and lower fuel costs. Duke's proposed upgrades will add 600 MW to the clean power capacity of existing nuclear and hydropower plants. (Reporting and editing by Laila K. Kearney)
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T-Mobile extends satellite-based networks to support WhatsApp and X in mobile-dead zones
T-Mobile announced on Wednesday that its satellite-to-cell networks now support widely used apps including WhatsApp, Google Maps, and X. This service offers connectivity in mobile dead zones as well as remote areas. The service was launched commercially in July, with limited access to MMS, SMS, picture messages, and short audio clips. T-Satellite is powered by over 650 Starlink satellites that transmit directly to cell phones. It's also available in about a dozen other apps, such as Pixel Weather and Apple Music. Jeff Giard is vice president of strategic partnerships and product innovations at Apple. He said: "We've worked with Apple and Google on frameworks for SAT (satellite connection feature) to allow any app to adopt the mode while connected to satellite and access the data channel." When a terrestrial signal is lost, T-Satellite users' phones automatically switch to the satellite network. Customers can launch satellite-ready apps to get critical services instead of data-intensive experiences. T-Mobile’s new “Experience Beyond” plan includes the network at no additional cost. The service is $10 per month for AT&T or Verizon customers. Giard stated that the framework for both the App Store (App Store) and the Play Store (Play Store) now allows apps to adopt SAT Mode through an application program interface. T-Mobile is also working to encourage app developers to activate the SAT mode. Giard stated, "I believe people are excited that their phone can connect to outerspace and that they don't have to purchase extra equipment to get a satellite telephone." (Reporting and editing by Shilpa Majumdar in Bengaluru, Harshita Varghese from Bengaluru)
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All battery storage tenders are awarded at prices well below cap
The CEO of grid operator Terna announced on Wednesday that Italy had awarded all 10 gigawatt hours of battery storage in its first ever auction at an average price of 13,000 euros per Megawatt Hour. The auction is a major step towards the integration of renewable energy in the grid. The Italian energy authority set a limit of 37,000 Euros per MWh. Giuseppina di Foggia, Terna's Giuseppina, said at the Energy Summit in Milan that she expected a reduction in the wholesale cost of electricity as a result of these auctions. Di Foggia stated that the capacity of the batteries awarded in the first tender represents an investment of approximately 1 billion Euros in the sector. He added that new tenders will follow, including one for hydroelectric infrastructure storage. Italy needs to increase storage capacity as its production of solar and wind energy is growing. By maximizing the use of these intermittent sources, electricity prices can be reduced to zero during times of high supply and low demand. The Terna-managed mechanism offers developers 15-year fixed revenue plus a portion of the ancillary service income in an effort to reduce the risks associated with the investment and speed up the deployment of battery systems. The award capacity will be online by 2028, and it is expected to help maintain grid stability in Italy as solar and wind power generation increases.
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Novak, Russia: Situation with domestic fuel supplies is under control
On Wednesday, Russian Deputy Premier Alexander Novak stated that while the overall situation of the supply of fuel is controlled on the domestic market, some regions still face fuel shortages. In several regions of Russia, there were shortages of popular gasoline types, such as in the far east of the country, Crimea (which Russia annexed in 2014 from Ukraine), and Nizhny Novgorod to east of Moscow. Ukraine has knocked down chunks of Russia’s refining capability via drone attacks . Russia is the third largest oil producer in the world after Saudi Arabia is a country that has a long history. Novak, a reporter, said: "We're experiencing some supply problems in some regions. The energy ministry and regions are working together to solve the problem manually." The government is imposing a ban on diesel exports for traders, and has extended the restrictions on gasoline exports until the end the year. Novak said that some refineries will be modernised this year and next, ensuring fuel supply. Novak stated that "if supply exceeds demand we will open export markets." (Reporting and editing by Guy Faulconbridge; Vladimir Soldatkin)
Gold rallys to record highs on US government shutdown and Fed rate cuts
Gold prices reached a new record on Wednesday. A weaker dollar, and the demand for safe-haven assets amid a U.S. Government shutdown, boosted gold's price. Meanwhile, softer employment data reinforced expectations that the Federal Reserve will cut rates this month.
As of 9:16 am, spot gold rose 0.2%, to $3,866.10 an ounce. After hitting a high of $3.895.09 in the earlier session, gold prices rose 0.2% to $3.866.10 per ounce at 09:16 a.m. ET (1055 GMT).
U.S. Gold Futures for December Delivery gained 0.5% to $ 3,892.80.
Dollar-priced Gold is now more affordable to overseas buyers as the dollar has weakened in comparison with a basket other major currencies.
Edward Meir, Marex analyst, said: "The dollar is under pressure. Usually when the U.S. government shuts down the mood becomes quite negative and the dollar as well as the U.S. stock markets suffer."
The dollar will also be hurt by the soft ADP job report. Another reason is that a slowing economy and lower interest rates are all bullish for gold.
After a downwardly-revised 3,000 job loss in August, private payrolls in the United States decreased by 32,000 in September. The economists polled had predicted a rise in private employment of 50,000 after a previous report of 54,000 jobs.
After partisan disagreements prevented Congress from reaching an agreement on funding, the U.S. federal government shut down major parts of its operations. This could put thousands of federal jobs in danger.
The shutdown may delay the release key economic indicators including the highly anticipated non-farm payrolls report (NFP), scheduled for Friday.
Gold, which is a non-yielding asset and considered a safe haven in times of geopolitical and economic uncertainty, thrives when interest rates are low.
CME FedWatch Tool shows that investors are pricing a 99% probability of a rate reduction this month.
SP Angel stated in a report that "we are now seeing an increased appetite from Western Investors, both institutionally and retail. As a case of FOMO kicks in... If this trend continues, we wouldn't be surprised if gold prices broke above $4,000/oz."
Silver spot gained 1,4%, reaching $47.33 an ounce - a record high for more than 14 years. Palladium fell 1.4% to $1,239.97, while platinum dropped 0.5% to 1,566.30. Noel John in Bengaluru and John Biju report.
(source: Reuters)