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GE Vernova reports third-quarter profits on demand for power equipment
GE Vernova reported a profit for the third quarter on Wednesday. This was largely due to a strong performance from its electrification and power equipment units. According to the Energy Information Administration, the U.S. will see record-breaking power consumption in 2025-2026 due to a surge of demand for data centers to run artificial intelligence technology. The electrification division of the company reported a core income of $393 millions in the third-quarter, up from $201 million one year ago. This unit offers grid equipment and other services. The steam and gas segment of the power segment reported a core income of $645m for the quarter ending June-September, up from $499m a year ago. The wind segment posted a core loss in the quarter of $61 millions, compared to a loss in the previous quarter of $317. The company confirmed that its revenue forecast for 2025 will be in the upper end, between $36 billion and $37 billion. The company's guidance takes into account the current tariffs and inflation. The Cambridge, Massachusetts based company reported a net income of $453 million or $1.64 a share. This compares to a loss last year of $99 millions or 35 cents.
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TSX Futures Fall as Precious Metals Extend Losses
Futures tied to Canada's main resource-heavy stock index declined on Wednesday, following a sharp drop in the previous session. The decline was attributed to continued weakness in metals prices as well as uncertainty over trade and geopolitical matters. At 05:54 a.m., December futures for the S&P/TSX Index were down by 0.3%. ET (0954 GMT). Toronto's Composite Index posted its largest decline since April Tuesday, as gold prices dropped sharply. Inflation data that were hotter than expected also reduced expectations of an imminent Bank of Canada rate cut. Silver prices fell 1%, and the precious metal price dropped more than 5% during the previous session. Shanghai copper prices also fell as traders' enthusiasm declined due to a weakening Chinese demand and the strengthening U.S. Dollar. The oil prices have risen for the second day in a row, driven by supply risk due to sanctions and optimism about a U.S. China trade agreement. Global markets were dominated by geopolitics after a summit between U.S. president Donald Trump and Russian president Vladimir Putin was postponed and ambiguity lingered about a possible meeting between Trump and Chinese leader Xi Jinping. Trump, despite Washington and Beijing's recent more conciliatory tone, added to the uncertainty surrounding the meeting by saying on Tuesday that "maybe it will not happen". The market participants are now awaiting the release of the U.S. Consumer Price Index on Friday. This is a crucial inflation indicator which could give insight into the monetary policy trajectory for the Federal Reserve. Also, the Canadian retail sales numbers, which are due Thursday, will give a good idea of consumer spending habits in Canada. Teck Resources, a miner, beat its third-quarter profit expectations on Wednesday thanks to higher copper and zinc costs. CLICK CODES TO GET CANADIAN MARKETS UPDATES: TSX Market Report Canadian Dollar and Bond Report Global Stocks Poll for Canada Canadian markets directory (Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore)
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Teck's profits beat forecasts on higher metal prices and the Anglo-Teck merger is on track
Teck Resources surpassed third-quarter profit expectations on Wednesday. The higher copper and zinc price helped, but production at the Quebrada Blanca Copper Mine in Chile was still constrained due to tailings. Teck shares listed in the United States rose by 2% before market opening. Teck is advancing a merger announced in September with Anglo American to create Anglo Teck. Anglo Teck will be a top five global copper producer, headquartered in Canada. The agreement aims to unlock synergies and save around $800 million annually between Teck's Quebrada Blanca project and Anglo's Collahuasi mine in Chile. According to LSEG, the Canadian miner posted adjusted earnings of 76 Canadian Cents per share in the third quarter that ended on September 30. This was above analysts' median estimate of 49 Canadian Cents. Teck reported a third-quarter profit increase on the back of higher base metals prices and increased sales at its Red Dog Zinc Mine in Alaska. It also cited lower smelter charges, as well as improved performance in British Columbia. The realized quarterly copper price rose by nearly 6%, to $4.45 a pound. Zinc prices grew 3.2%, to $1.29 a pound. The third quarter saw a 9.1% drop in copper production to 104.100 tonnes. Production at the Quebrada Blanca Mine fell by 24.6%, to 39.600 tonnes. This was due to ongoing work to increase the tailings dam's crest. The company stated that the construction of a tailings facility on the site is the biggest constraint to production. However, improvements are being made in the sand drainage system and the dam construction. Teck has maintained its copper production forecast for 2025 at 170,000 to 190,000 tons at net cash cost of $2.65 to $3.00 per pound.
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New Mexico villages still facing flooded homes and poisoned water wells after wildfire
When it rains, Victoria Lovato’s ranch in northern New Mexico is flooded by three muddy torrents. The torrents are the result of New Mexico’s largest wildfire ever that burned mountains above her property over three years ago. This type of post-wildfire flood is making Western United States homes unlivable, and destroying infrastructure like roads and water treatment facilities. Climate change causes blazes to burn larger areas at higher temperatures. Ranch dogs follow Lovato's GMC truck as she, Ismael, and their daughter Mia, 11, drive north through a high mountain valley that is ringed with torched trees following the Hermit's Peak - Calf Canyon Fire of 2022. Lovato, 41 points out the "nuked mountains" above her 52-acre Mora ranch, located about 64 km (40 miles) northeast of Santa Fe. Two U.S. Forest Service prescribed blazes that were mishandled started the drought-fuelled blaze. It was hot enough to melt rock and bake the soil to the consistency asphalt. The soil is no longer able to absorb water, and there are no trees or shrubs left to slow the flow. Rain flows off the burn scars like water from a parking area, sweeping away soil and boulders with debris flows and flash floods. According to a recent study in Nature Sustainability, the number of Americans who live in areas that are exposed to wildfires has doubled in the last two decades to almost 22 million. According to a study by 2020, the area of Western forests that are burned with the intensity required to create the post-apocalyptic landscape Lovato can see from her home has increased eight-fold over the past three decades. Jason Kean, an hydrologist with the U.S. Geological Survey, maps wildfire burn zones to assess risks of debris flows and flash floods. He worked on more than 105 fires last year, covering an area of 6 million acres. This is nearly twice as large as Connecticut. He said that because flood risks can persist for up to 10 years, the area of heavily burned land susceptible to flash flooding is growing every year. Kean said, "You begin to accumulate a lot more vulnerable terrain." Coconino County, in northern Arizona, has slowed down or diverted flooding by creating features like alluvial fan sediment fields which act like giant sponges to soak up the water. Lucinda Andreani visited Mora, Arizona to share the lessons learned after $118 million was spent by federal, state, and local funds on watershed restoration following wildfires in the county surrounding Flagstaff. Around a dozen residents, contractors, and activists from the community said that this type of funding and collaboration among authorities still isn't present in Mora County. FLOODS CLAIM MUCH MORE LIFE THAN FIRE Lovato's house survived the fire which destroyed hundreds of homes but did not cause any deaths. Since then, her valley has been inundated over twenty times. The water has flooded her outbuildings, her neighbors' homes and knocked down fences, allowing cattle to escape. It even came to her doorstep this year. In 2022, a flood drowned an automobile. A 2022 flood drowned a motorist. According to data from the state and local governments, New Mexico has lost seven lives in the past five years due to post-wildfire floods, while five people have died in fires. According to emergency management officials in Washington, Utah, and Colorado, no national data have been developed on deaths after wildfires and flooding. These states only launched post-wildfire disaster reduction programs within the past six years. Collin Haffey is the head of Washington State's post-fire program. He compared the current situation to the Dust Bowl, which was a severe soil erosion that occurred in the Great Plains during the 1930s, forcing many people to migrate. CONTAMINATED WEELLS According to County Commissioner Veronica Serna, dozens have been abandoned in Mora County - one of the most impoverished counties in the United States - due to a mold infestation after flooding. According to a study conducted by Zeigler Geologic Consulting in October, toxic heavy metals were washed into wells as a result of flash flooding. The company analyzes the groundwater quality in Mora County. Lovato is among the residents who say it's become harder to get assistance from the Federal Emergency Management Agency after President Donald Trump started dismantling that agency and cutting grants and jobs at other federal offices. FEMA officials did not respond when asked for comments. According to local officials and businesspeople, the misery of repeated flooding has forced dozens of families and companies out of Mora County and San Miguel County with a combined total population of around 30,000. New Mexico Department of Homeland Security and Emergency Management announced that it is working with U.S. Forest Service and Natural Resources Conservation Service in order to identify funding for restoration of watersheds. The state agency announced that it had launched a survey to identify areas of high risk and was developing potential projects for those areas. Requests for comments were not immediately responded to by the NRCS or USFS. George Trujillo, chair of the Mora County commission, said that the county is focused on a plan worth $41 million to repair roads. He said that the USFS (which manages burned land in and around Mora) and private landowners needed to restore mountain watersheds for valley flooding to stop. Trujillo said that it would be a waste of time to fix the floodwater in the bottom, if the top parcels were not fixed. Lovato, standing by a culvert which becomes a giant fire hydrant during a rainstorm, is frustrated that county officials paved the dirt road this summer rather than work on restoring its watershed. She said, "We want to find a real solution." (Reporting and editing by Donna Bryson, Aurora Ellis and Andrew Hay from New Mexico)
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Gold prices continue to fall as dollar firms and investors make profits
The gold prices continued to decline on Wednesday after their steepest daily drop since 2020 the previous session. An initial recovery was followed by renewed selling as investors locked in profits, and a stronger US dollar added pressure. As of 0941 GMT the spot gold price was down by 1.4%, at $4,067.31, after having risen as high as $4,161.17 in earlier sessions. U.S. Gold Futures for December Delivery fell 0.7%, to $4.081.30 an ounce. Dollar-priced gold became more expensive as the U.S. index of dollar hovered at a high for a week. Bullion prices dropped 5.3% on the day after hitting a record-high of $4,381.21 during the previous session. Prices are up 54% this year due to geopolitical instability and economic uncertainty, U.S. interest rate expectations and strong ETF inflows. The analyst at ActivTrades, Ricardo Evangelista, said that the recent gains in gold prices were a sign that they had reached an overbought level. This led to many traders closing their positions to lock in profits. The 21-day moving median at $4,005 is a technical support for gold. Investors await the U.S. Consumer Price Index report (CPI), due on Friday. This could provide insight into the Federal Reserve’s rate-cutting trajectory. In low-interest-rate environments, gold, which is a non-yielding investment, tends do well. According to a poll of economists, the Fed is expected to lower its key rate by 25 basis points next week and then again in December. A planned summit between U.S. president Donald Trump and his Russian equivalent Vladimir Putin has been put on hold, and uncertainty surrounds a potential meeting between Trump and Chinese president Xi Jinping. StoneX analyst Rhona OConnel said: "We're still in a period of uncertainty, which will likely lead to a new interest for buying at any significant dips." Silver spot increased 0.9% to $48,28 an ounce. On Tuesday, it fell 7.1%. Palladium fell 1%, to $1,394.52, while platinum dropped 0.1%, to $1,549.53. (Reporting from Anmol Choubey in Bengaluru and Sherin Varghese, with additional reporting by Polina Devitt; editing by Sherry Phillips and Shailesh Kumar)
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Aluminum prices rise to highest level since June 2022 due to supply concerns
On Wednesday, aluminium prices reached their highest level in over three years due to fears of shortages as well as hopes for a U.S.-China trade agreement. The price of three-month aluminium at the London Metal Exchange rose 0.9% by 0915 GMT to $2,805 per metric ton after reaching $2,821. This was the highest price since June 9, 2022. Ole Hansen is the head of commodity strategy for Saxo Bank, in Copenhagen. What we have to do today is see if we can get a foothold over that $2,800 mark. If this is the case, that area may become a new base to move towards $2,950. Data released on Monday showed that the global primary aluminum output for September increased 0.9% year-onyear to 6,08 million tonnes, despite a Chinese government-imposed cap on production. In a recent note, ING analyst EwaManthey stated that "outside of China, few recent European or U.S. start-up announcements have been made, largely because it is difficult to secure long-term contracts at affordable prices." Investors were hopeful of avoiding a trade conflict between the U.S. and China, which is the world's largest metals consumer. President Donald Trump stated on Monday that he expected to reach a fair deal with Chinese President Xi Jinping. LME copper was unchanged at $10,629 per ton after potential physical buyers retreated at high prices following a rally fueled by speculators. It's actually good that the copper prices were corrected, because it might encourage some real consumption by downstream buyers. "They were not buying anything before," said a Shanghai copper trader, who requested anonymity because he was not authorized to speak to media. The Shanghai Futures Exchange's most active copper contract closed the daytime trade down 0.13% to 85,420 yuan (11,992.14) a metric tonne. The LME zinc price rose by 0.6%, to $3006 per ton. Lead increased 0.3%, to $1,991.50. Tin gained 0.7%, to $35,650, while nickel fell 0.1%, to $15,155. ($1 = 7.1230 Chinese Yuan) (Reporting and additional reporting by Dylan Duan, Shanghai; Editing done by Sahal Muhammad)
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Investors mix up the major Gulf markets as they look for earnings; FAB boosts Abu Dhabi
The major Gulf stock markets were mixed early on Wednesday as investors awaited the release of earnings reports. However, Abu Dhabi's index rose on the back of First Abu Dhabi Bank's results. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, saw its index rise by 4.6%. FAB, on track for its best day in late July, reported a 21 percent increase in the third-quarter's net profit at 5.39 billion dirhams (1.47 billion dollars), which was above analysts’ average estimates of 4.54 billion. Abu Dhabi Islamic Bank, whose trading had been suspended before its earnings announcement, was the last to gain 4%. Saudi Arabia's benchmark stock index rose 0.1%, thanks to a 1.5% increase in the oil giant Saudi Aramco. The oil price, a major factor in the Gulf's financial market, rose by 2% on Wednesday. This was boosted by supply risk due to sanctions and by hopes for a U.S. China trade agreement. Etihad Etisalat, a telecoms company, rose 3.4% after it reported a higher third-quarter profit. Sahara International Petrochemical Company, however, fell 4.6% to become the worst performer on the index as it posted quarterly losses. Sipchem reported a net loss 468.7 millions riyals (124.97millions), compared with a profit 103.2 million of riyals the previous year. The International Monetary Fund (IMF), which last week raised its growth forecast for 2025 for the Middle East & North Africa, said that the risks in the region remain to the downside despite recent improvements in geopolitical conflicts. Dubai's main stock index was flat with Emirates NBD up 0.7% as the largest lender prepares to announce its quarterly earnings. The Qatari Index eased by 0.1% during choppy trading, mainly due to a fall of 0.4% in Qatar Islamic Bank. This shariah compliant lender will soon announce its nine-month results.
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Minister says JSW Poland will not receive energy fund contributions back
The Polish finance minister announced on Wednesday that the state-controlled coal firm JSW could not get back the 1.6 billion Zlotys (412 million dollars) it had paid into a fund set up to offset rising energy prices. At 0840 GMT, the company's stock was down 4.6%. Poland's government requested a contribution by JSW in order to fund a mechanism that would freeze energy prices. JSW asked for a refund. Contribution that it paid between 2023 and 2024 citing its financial difficulties. Europe's biggest producer of feedstock for the steel industry, which is affected by the falling price of coking coal as well as high wages, faces liquidity problems and must restructure. At the moment, it is not possible. "With coal prices falling, JSW is facing serious liquidity issues," said Andrzej Domaski, Finance Minister, on public radio Wednesday. I would like to know what steps will be taken in the area of cost. Last week, Donald Tusk, the Prime Minister of Poland, said that the country's defense industry could be involved in restructuring JSW. Shares of the company rose after Poland's Energy Minister proposed that it be included in a law draft which would allow its miners to take part in a voluntary leave program, allowing them to save money. $1 = 3.6365 Zlotys (Reporting and editing by Thomas Derpinghaus; Pawel Florkiewicz, Marek Strzelecki).
Gold gains ground amid uncertainty and rate outlook
The gold price slightly recovered on Wednesday after the sharpest drop since 2020 the previous session. Investors bought on the dip amid economic uncertainty and the expectation of U.S. interest rate cuts.
As of 0803 GMT, spot gold was up by 0.3% to $4,134.37 an ounce. U.S. Gold Futures for December Delivery climbed almost 1% to $4147.10 an ounce.
Bullion, which reached multiple records this year, fell to $4,003.39 in the early session. This extended losses following a 5.3% drop on Tuesday, when it marked its biggest daily decline since August 2020.
StoneX analyst Rhona o'Connell stated that "that correction was needed as the market had been well and true overbought trading off its momentum."
"We're still in an uncertain era, which will likely lead to a new buying interest if there are any significant dips."
Investors await the U.S. Consumer Price Index report (CPI), due Friday. This could provide insight into the Federal Reserve’s rate-cutting trajectory.
The Fed is expected to lower its interest rate next week by 25 basis points and then again in December. However, opinions are divided about the future outlook of rates.
A planned summit between U.S. president Donald Trump and his Russian equivalent Vladimir Putin has been put on hold, and uncertainty remains over a potential meeting between Trump & Chinese President Xi Jinping.
Gold has risen 57% this year, a good sign for a currency that tends to do well in low interest rate environments. Bullion will have its best annual performance since 1979 due to geopolitical instability and economic uncertainty, U.S. interest rate expectations and robust ETF flows.
Silver spot edged up 0.2% to $48,84 an ounce after Tuesday's 7.1% decline.
Palladium rose 0.7% to $1 417.68, while platinum fell 1.4% to $ 1,529.52.
(source: Reuters)