Latest News
-
Sources say that traders are seeking yuan payments from Indian state buyers who purchase Russian oil.
Sources in the trade said that traders offering Russian oil are now asking Indian refiners to make payments in Chinese Yuan. They see recent signs of improved relations between New Delhi, China and Beijing as an opportunity to simplify transactions with Indian buyers. Indian Oil Corp, India's largest refiner and state-controlled company, paid in Chinese currency recently for two or three cargoes worth of Russian oil. Indian Oil has not responded to the request for comment immediately. Western sanctions against Russia following its invasion of Ukraine in 2022 have led to a greater use of alternative currencies such as the yuan or the dirham of the UAE for oil trade settlements. The dollar has long dominated these transactions. Indian state refiners paid for Russian oil using yuan in 2023. However, they stopped doing so due to the Indian government's displeasure during a time of increased tensions with Beijing. Private refiners, however, continued to use Chinese currency. One trader stated that traders who previously had to convert payments from dirhams and dollars to yuans, since they can only be exchanged directly into roubles to pay producers, are now looking to eliminate a costly step. Sources said traders also priced Russian oil in US dollars to ensure compliance with the European Union price cap, and sought payment equivalent to yuan. Due to sanctions, the West has stopped importing Russian oil. The sources stated that payments in yuan would increase the availability of Russian crude oil for Indian refiners as some traders refused to accept other currencies. After a break of over five years, India and China resumed direct flights. Last month, Indian Prime Minister Narendra Modi travelled to China for the first time since 2007. He was there to attend the Shanghai Cooperation Organisation's regional security bloc.
-
The Handelsblatt reports that Continental has reached a deal with former managers in the diesel scandal.
The Handelsblatt reported on Tuesday that Continental AG, a German company, has reached an agreement with former managers in which their insurance will pay damages between 46.7 million euros and 58.3 millions dollars for the diesel scandal. According to Handelsblatt, the deal with insurers is subject to shareholder approval and covers only a portion of the 300 million euro total damage. Continental's spokesperson stated in a press release that the supervisory board has a duty to investigate possible claims of damages in cases where there is evidence of executive board members breaching their duties. The spokesperson added, "Please be aware that we will not comment further on any details." In April 2024, Continental A fine of 100 millions euros was imposed to settle an investigation by the public prosecutor’s office, which has been completed. Dieselgate, a scandal that rocked the German automotive industry in 2015, revealed that illegal software had been installed on cars to cheat emissions tests. The scandal has also led to fines for other suppliers, including ZF Friedrichshafen, and Bosch, which is the largest global supplier of auto parts. Volkswagen, the first place where the manipulations had been discovered, was fined 1 billion euros.
-
IFR reports that Saudi Arabia's PIF raised 1.65 billion Euros from the sale of green bonds
IFR, a fixed-income news service, reported that Saudi Arabia's Public Investment Fund sold 1,65 billion euros ($1.9billion) of a green dual-tranche bond on Tuesday. IFR reported that the fund had raised 800 millions euros in notes of three years at 58 basis point over mid-swaps, and 850 millions euros for notes of seven years at 90 basis points over the same benchmark. The indicative price of the three-year bond was revised earlier to 65 bps above mid-swaps, from an initial 90 to 95 bps. Meanwhile, the guidance for the seven year tranche was lowered from 125 to 95 bps. PIF entered the green debt market in 2022. Since then, it has issued several U.S. Dollar-denominated Bonds under its Green Finance Framework. The framework allows for proceeds to be allocated to projects that promote renewable energy, clean transportation and sustainable infrastructure, including those undertaken in Saudi Arabia by PIF subsidiary companies aligned with Vision 2030.
-
Gold surges to record highs, reaches $4000 mark
Gold continued its record-breaking rally Tuesday, hovering only $22 short of the $4,000 an ounce milestone. This was driven by expectations that the Federal Reserve will cut rates later this month, and the persistent demand for safe-haven assets amid the ongoing U.S. Government shutdown. Gold spot was up 0.4% at $3,978.01 an ounce as of 0923 ET (1323 GMT) after reaching a high of $3985.48 in the earlier session. U.S. Gold Futures for December Delivery rose by 0.6%, to $4,000.90. This marks the first time that the $4,000/oz mark has been breached. There is no indication that the situation will be resolved within the next few months. There's still some interest in gold, according to Peter Grant. He is the senior metals analyst at Zaner Metals and vice president. Gold that does not yield, which is more likely to perform well in times of uncertainty or low interest rates, has gained 52% this year. The metal's rise has been driven by several factors including the expectation of interest rate reductions, political and economic uncertainties, central bank purchases, and inflows to gold ETFs. The U.S. shutdown reached its seventh day Tuesday. The shutdown has delayed the release of important economic indicators. This forces investors to rely upon secondary, nongovernment data in order to determine the timing and magnitude of Fed rate reductions. For a second consecutive day, currency and bond market volatility was dominated by political turmoil in France as well as Japan. Investors now expect a 25 basis-point reduction at the Fed's meeting in this month. An additional 25 bp is expected in December. Data from the People's Bank of China revealed that China's central banks added gold to their reserves for the 11th consecutive month in September. Goldman Sachs increased on Monday its December 2020 gold price forecast from $4,300 to $4,900, citing large inflows of Western exchange-traded funds (ETFs) and possible central bank purchases. The price of spot silver fell by 0.4% to $48.31 an ounce. Platinum was down 0.1% at $1,624.63 while palladium rose 1.6% to $1,340.68. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Vijay Kishore)
-
Source: Rescuers are racing to rescue Everest hikers stranded by Tuesday.
Sources familiar with the situation say that more than 200 trekkers stranded near the east face of Everest, in Tibet, will be evacuated on Tuesday. This is after strong snowstorms swept across western China. Since the start of an eight-day break on October 1, outdoor enthusiasts have been flocking to China's rugged interior. But a sudden snowstorm over the weekend caught hundreds of hikers off guard, hoping to catch a view of Everest's Kangshung Face. The source who spoke under anonymity because he was not authorized to speak with media about the issue said that their evacuation, which started on Monday, would be completed by Tuesday. Tibet's regional administration had no immediate comments. FOLLOWING FOOTPRINTS in Heavy Snow In Tibet's Karma Valley, at a height of 4200 m (13 800 ft), snow fell all day Saturday. Rescuers guided 350 hikers stranded on Sunday to safety. "Thankfully, people in front of us left footprints that we could follow, that made it easier," said Eric Wen (41), adding that he had to trudge through 19 km (12 mi), the majority of which was heavy snow, before he could leave the valley. It would have been impossible to survive on our own. As of Tuesday night, there was no official word about the health of the remaining trekkers despite reports from Chinese state media that they had established communication. British mountaineer Adriana BROWNLEE said that if bad weather is forecast, climbers and trekkers should notify local authorities and stay in a place where they can be safe. This could be a tent, lodge or shelter away from avalanche areas, far enough from rivers or in some other way sheltered. All climbers and trekkers should carry a satellite phone or tracking device. The Karma Valley is still relatively unexplored, despite being first explored by Westerners a century earlier. It is not as popular as the north face, which has road access. Last year, more than 540,000 tourists toured the Everest region. This is a record. "METRE OF SNOW" Snowstorms also prevented climbers from Madison Mountaineering, an American-based company, from reaching the summit of Cho Oyu. Cho Oyu is a peak that stands 8,188 m (26.864 ft) high on the border between China and Nepal, which is the sixth-highest peak in the world. In a Tuesday text message, expedition leader Garrett Madison said that a major storm developed suddenly and dropped over a metre's worth of snow on Everest. They will resume their ascent when the weather improves. One trekker, north of Tibet, died on Sunday from hypothermia after being trapped by snowstorms in the Qilian Mountains near the western provinces Qinghai & Gansu. China Central Television (CCTV), a state-run broadcaster, reported that by Tuesday, 251 hikers who had survived the storms in Qilian were rescued. In Xinjiang, authorities further west have suspended camping and hiking in the Kanas lake district in the Altai Mountains. The broadcaster reported that police have convinced over 300 hikers to turn around who were heading towards the area. CCTV reported that police patrolling in the area found a group on hikers. One of them, who was unable to move and showed symptoms of hypothermia, was taken to a hospital where he is now stable. The area was covered in dangerous ice and slush, which paralyzed road traffic, including tourist buses. Reporting by Ryan Woo, Beijing Newsroom and Joyce Zhou in Hong Kong, Gopal Sharma, Kathmandu, and editing by Kate Mayberry Clarence Fernandez, and Gareth Jones
-
Caribbean Island residents ask the court to order Dutch State to take climate action
Residents from the Dutch Caribbean told a court Tuesday that the climate change has made the island of Bonaire unbearably dry and hot. They asked the judges to order Dutch state to reduce greenhouse gases faster. Onnie Emerenciana (a farmer in his sixties) told the court the heat was bad for the elderly, the droughts were bad for the crops, and the rising sea level could wipe out the historically important slave huts that once stood on the beaches of the island. Emerenciana, a district court judge in The Hague, said: "We are suffering under the effects" of greenhouse gas emission to which we barely contributed. PLAINTIFFS WANT DUTCH TO TARGET NET ZERO BY 2040 Bonaire, in the southern Caribbean, is an ex-Dutch colony that became a Dutch special municipality in 2010. Around 20,000 of its residents are Dutch. Eight named plaintiffs, joined by Greenpeace and other environmentalist groups, are calling on the Netherlands to reduce its greenhouse gas emissions to zero in 2040, ten years earlier than its current plans. They also claim that the Dutch government is not doing enough to protect the island from rising sea levels. Experts in climate change cases claim that the Dutch case is the first time the European Climate ruling of 2024 and the World Court's opinion from this year have been tested on a national scale. If the Netherlands succeeds, they will have to raise their climate ambitions above the current European Union goals - setting new standards for climate action in Europe," Lucy Maxwell from the Climate Litigation Network said. Michael Bacon, the plaintiffs' attorney, told judges that "effective climate policy is neither a political decision nor a choice. It is a duty and right." The Dutch state's lawyers argued that courts should not be able to determine government policy. Edward Brans, state attorney, said that the state has met its obligations to Bonaire through its climate policy and by achieving climate targets set jointly with the European Union. There is still no date set for the ruling. (Reporting by Stephanie van den Berg. Ali Withers contributed additional reporting from Copenhagen. Alison Williams, Mark Potter and Alison Williams edited the article.
-
Indian jeweller Titan posts slower sales as surge in gold prices dent demand
Titan Company in India reported a 18% increase in domestic sales for the second quarter, compared to the 25% that it recorded during the same time last year. This was due to the rising gold prices which hampered demand for high-carat jewellery. In its quarterly business update, the Bengaluru based company reported that the jewellery business, which accounts for close to 90% overall revenue, had grown 19% on an annual basis. Gold spot prices increased 16.4% during the third quarter, as investors sought out the safest commodity amid global economic instability. The company reported that higher gold prices led to "a marginal year-on-year decrease" in the number of buyers, despite ticket prices rising as fewer people bought more expensive items. Titan said that the growth of studs in its Tanishq, Mia, and Zoya jewellery portfolios collectively reached the mid-teens. This was higher than the growth of plain gold jewellery. The company reported that investment-grade gold coin sales continued to be strong for the quarter as Indians chose the gold bullion as an asset of value. Since coins have lower profit margins than jewelry, this shift has slowed the growth of overall margins in recent quarters. Sales growth in the company's second largest business by revenue was 12%. Analog segment sales grew 17%. Tanishq, which has more than doubled its business in America, was the main driver of the 86% growth. (Reporting from Ananta Agarwal in Bengaluru and Urvi dugar; editing by Harikrishnan Nair.)
-
Copper gains, but remains below the Monday peak due to a firm dollar
On Tuesday, copper prices rose on the back of continued mine disruptions. However, they remained below 16-month-highs reached in the previous session due to a stronger dollar. In open-outcry official trading, three-month copper at the London Metal Exchange rose 0.4% to $10,696 per kilogram, after hitting its highest level since May 2024 at $10800 on Monday. LME copper prices have risen 21% this year. Recent weeks saw a rise in price due to mine problems in Chile and Congo, as well as Indonesia. Seven workers were killed in a mudslide disaster at the Grasberg copper mine, which is one of the largest mines in the world. The El Teniente Mine in Chile and Kamoa-Kakula mine in the Democratic Republic of Congo have also experienced disruptions. "The disruptions have been huge so I thought that copper would rise faster than it has, but the dollar is getting stronger," said Dan Smith. One headwind that could explain why we aren't doing better is the slowdown of sales for electric vehicles in many places. In the first half of this year, the average monthly EV sales in China grew by 36%, but that slowed to 6% in august. Smith said that the LME copper price was nearing a band of resistance between $10,750 and just under $11,000 where it had failed to break out three times previously, in May 20,21, March 2020, and May 2024. If we go backwards from here, the technical outlook is quite bearish." The dollar index also benefited from the weaker euro and yen. A stronger dollar makes greenback-denominated assets more expensive for buyers using other currencies. Other metals include LME aluminium, which fell 0.3% to 2,717.50 per ton. Nickel dropped 0.1% to $16,470, tin declined 0.7% to $35,550, zinc rose 0.6% to 3,025 and led added 0.1% at $2,007. Golden Week, which runs from 1-8 October, is a time when Chinese markets will be closed. Click or to see the latest news in metals, and other topics. (Reporting done by Eric Onstad. Additional reporting by Brijesh Patel in Bengaluru. Kate Mayberry, Mark Potter and Kate Mayberry edited the story.
Indian jeweller Titan posts slower sales as surge in gold prices dent demand
Titan Company in India reported a 18% increase in domestic sales for the second quarter, compared to the 25% that it recorded during the same time last year. This was due to the rising gold prices which hampered demand for high-carat jewellery.
In its quarterly business update, the Bengaluru based company reported that the jewellery business, which accounts for close to 90% overall revenue, had grown 19% on an annual basis.
Gold spot prices increased 16.4% during the third quarter, as investors sought out the safest commodity amid global economic instability.
The company reported that higher gold prices led to "a marginal year-on-year decrease" in the number of buyers, even though ticket prices increased as fewer people bought more expensive items.
Titan said that the growth of studs in its Tanishq, Mia, and Zoya jewellery portfolios collectively reached the mid-teens. This was higher than the growth of plain gold jewellery.
The company reported that investment-grade gold coin sales continued to be strong for the quarter as Indians continued to choose bullion as an asset of value. Since coins have lower profit margins than jewelry, this shift has slowed the growth of overall margins in recent quarters.
Sales growth in the company's second largest business by revenue was 12%. Analog segment sales grew 17%.
Tanishq, which has more than doubled its business in America, was the main driver of the 86% growth.
(source: Reuters)