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The daily HS reports that Lukoil Finland's fuel stations are dry because of sanctions
Helsingin Sanomat, citing Teboil's spokesperson, reported Friday that the Finnish petrol station chain Teboil is out of fuel due to U.S. sanctions imposed on its parent company. Donald Trump, the U.S. president, announced on October 22 that Rosneft (Russia's oil company) and Lukoil would be subject to sanctions as a result of a policy shift regarding Moscow's conflict in Ukraine. He also said that companies who do business with these two groups may face sanctions. The U.S. Treasury referred to Gunvor as Russia's "puppet", and indicated that Washington was against the deal. On November 6, a deal between Gunvor, a Swiss commodity trader, and Lukoil for the purchase of foreign assets fell through. Sources have reported that Lukoil struggles to maintain operations at its vast foreign businesses in places like Finland, Switzerland and Iraq. Toni Flyckt is Teboil’s director of marketing and communication. She told HS that Teboil was running out of fuel. Teboil didn't immediately respond to an inquiry for comment. Last month, the Financial Supervisory Authority of Finland said that banks and other Finnish financial institutions are subject to its regulation and should be cautious when dealing with Lukoil or companies owned directly or indirectly by it. According to the website of Teboil (which is owned by Lukoil), it has 430 Finnish service stations, or about one fifth (2250) of all the stations in Nordic countries, according to an industry report from 2024. Annual reports reveal that the company's revenues have fallen in recent years, as Finns chose to use other stations because of Teboil’s connection to Lukoil. Revenues fell to 1,61 billion euros ($1.88billion) in 2024, from 2,36 billion euros in 2020. On Friday, the Kremlin stated that Lukoil’s international interests must be respected.
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Gold prices rise on hopes of a US rate cut and government shutdown problems
Gold prices rose on Friday, as the Federal Reserve's expectations for further interest rate reductions and the U.S. economy outlook in the face of a prolonged shutdown boosted demand. As of 1148 GMT, spot gold was up by 0.6% to $3,999.89 an ounce. U.S. Gold Futures for December Delivery gained 0.4% per ounce to $4,008.20. Independent analyst Ross Norman said, "The bull market is still going on." The central banks' gold purchases and rate cuts are still on the table. Data showed that the U.S. economy lost jobs in October, mainly due to losses in the retail and government sectors. Cost-cutting and artificial intelligence adoption by companies also led to an increase in announced layoffs. Rate cuts are more likely to occur when the job market is weak. The market participants are now predicting a 67% probability of a Fed rate reduction in December. This is up from 60% just before the report. Last week, the Fed cut rates and Chairman Jerome Powell said it could be the last time the borrowing costs are reduced for the year. Soni Kumari is a commodity analyst with ANZ. She said that the focus now is on macroeconomic numbers, and when the U.S. government shutdown will end. This is helping to boost safe-haven gold demand. The longest government shutdown in U.S. history has been caused by a congressional impasse. Investors and the Fed, who rely heavily on data, have had to rely instead on indicators from the private sector. Silver spot rose 1.2% per ounce to $48.58. Palladium rose 0.7% and platinum 0.4%, respectively, to $1384.18. All three metals will lose money this week. (Reporting and editing by Ronojoy Mazumdar, Sahal Muhammed and Ishaan Patel in Bengaluru)
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Duke Energy's electricity rates beat quarterly estimates
Duke Energy, a utility company, beat Wall Street expectations for revenue and profit in the third quarter on Friday. This was due to higher electricity rates and high power demand. Electricity costs will rise as data centers consume more power in the wake of an industrial electrification wave and a manufacturing boom. According to the U.S. Energy Information Administration, a surge in AI- and cryptocurrency-based data centers combined with the accelerating electricification of homes, businesses and other buildings is expected to drive U.S. electricity demand to record levels by 2025 and 2026. Duke Energy 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. In a press release, CEO Harry Sideris stated that "as load growth materializes in our jurisdictions we expect our new five-year plan to be between $95.9 billion and $105.9 billion when we refresh our plan in February." Duke Electric serves 8,6 million customers in six states across the U.S. and has about 55,100 Megawatts of power capacity. The adjusted earnings for its electric utilities division were $1.69 billion. This is up from $1.46 in the previous quarter. The company's adjusted full-year profit forecast has been reduced from $6.17 to $ 6.42 per share to $6.25 to $6.35. According to data compiled by LSEG, the company's quarterly revenue was $8.54 billion - higher than analysts' estimates of $8.50billion. Charlotte, North Carolina based company reported an adjusted profit per share of $1.81 for the three-month period ended September 30 compared to estimates of $1.75. (Reporting from Bengaluru by Sumit S. Saha; editing by Shailesh K. Kuber)
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NALCO, India's NALCO, posts higher profit on higher commodity prices
The National Aluminium Company of India (NALCO), a state-owned company, reported an increase in profit on Friday due to higher commodity prices. Due to the uncertainty surrounding U.S. Trade policies, the benchmark three-month aluminum and copper prices rose by 8.2% and 5.6% respectively on an annual basis during the quarter. Mining companies tend to benefit from higher commodity prices by increasing their margins and selling prices. Bhubaneswar is India's biggest producer of alumina or aluminium oxide. This is used to produce aluminium, and as a catalyst for petrochemical refinement. The company's profit for the period July-September was 14.3 billion rupees, or 162.69 millions dollars. This is up 36.7% compared to a year earlier. Revenue from operations increased 7.3% to 42.92 Billion Rupees. NALCO’s aluminium division, which accounts for more than half the company’s revenue, increased by nearly 6%. The second business segment of chemicals, which includes caustic soda and hydrochloric acids, grew 7.7%. The decrease in expenses was mainly due to lower fuel prices and employee benefits. EBITDA margins increased as a result of revenue growth and a drop in expenses. Vedanta, a rival company, reported a 14% increase in aluminium segment revenues. Hindalco posted a profit that was higher than expected due to improved commodity prices. ($1 = 87.8950 Indian rupees) (Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair)
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Japan temporarily increases fuel subsidies to smooth out tax cuts
The Japan Industry Ministry announced on Friday that it would temporarily increase gasoline and diesel subsides from next week to try and smooth out the impact of planned tax reductions on fuels. To ease the burden of households, the ruling and opposition parties in the country agreed to abolish the gasoline tax by December 31, and the diesel tax by April 1, next year. The government is hoping that by temporarily increasing subsidies on gasoline, diesel and other fuels, consumers won't be tempted into delaying purchases until the tax reductions are implemented. This move will also help Japan avoid long queues in gas stations, if prices drop dramatically overnight. The tax on diesel and gasoline, although referred to by some as temporary, has been in effect since the 1970s when it was implemented as a temporary measure to fund road construction and maintenance. The tax is currently added at a rate of 25.1 yen per litre ($0.17) to the 28.7-yen base rate for gasoline, and 17.1 yen (or $0.17) to the 15.0-yen base rate for diesel. In order to help ease the burden of rising inflation, Japan offers subsidies of 10 yen for each litre of gasoline or diesel. On November 27, the gasoline price will increase to 20 yen and diesel to 17.1 yen. By December 11, gasoline prices and diesel prices will be 25.1 yen and 17.1 to 25.1 yen. Subventions will cease when fuel taxes are abolished. A ministry official stated that while lower prices may spur demand, Japan's gas consumption has fallen by over 2% per year due to the population decline and increased use of hybrid cars, making a recovery unlikely. ($1 = 150,7800 yen)
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Indian beauty retailer Nykaa reports a profit increase of more than three times on strong makeup demand
The quarterly profit of Indian beauty retailer Nykaa more than tripled on Friday. This was boosted by the steady demand for skincare and makeup products, as well as through new partnerships with global brands. The company, which was formerly known as FSN e-Commerce Ventures posted a profit for the quarter ending September 30 of 344.4 millions rupees (about $3.9 million), up from 100.4million rupees one year earlier. Nykaa's quarterly results reveal that it is focusing on profitability and doubling down on the core beauty business. This has meant expanding the offline presence and securing strategic partnerships, including Katrina Kaif’s Kay Beauty and Rihanna’s Fenty Beauty. Nykaa has been able to cater for India's beauty and personal care $28 billion market, which has remained resilient in spite of a general slowdown in consumption. The beauty industry's revenue grew 25%, to 21,32 billion rupees. This was boosted by premium brands like Chanel, Korean skincare brand Aesura and sunscreen manufacturer Supergoop. The fashion vertical of the company, which includes clothing and accessories from brands like Victoria's Secret, Titan's Mia and others, saw a 21% increase in sales, increasing overall revenue to 23,56 billion rupees. Nykaa has added 19 new beauty stores to its 262 total during the third quarter. The focus on premium products helped to increase gross margins from 43.8% in the previous year. ($1 = 87.8950 Indian Rupees) (Reporting and editing by Ronojoy Mazumdar in Bengaluru)
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Congo suspends operations at Chinese mine following spill
After a spill in the south of this resource-rich nation, the Democratic Republic of Congo suspended operations at a Chinese operated mining site. Mines Minister Louis Watum Kabamba announced late Thursday. Congo Dongfang International Mining, which sources mainly copper and cobalt in Central Africa, is an arm of China's Zhejiang Cobalt. Watum told X he had come to Lubumbashi, Congo's second largest city, after learning about a spill that had affected many neighborhoods. He claimed that the company did not meet the environmental standards and was causing serious water pollution, which exposed the public to health risks. He added that the three-month suspension could be extended, if needed. Watum stated that "CDM should fully repair any environmental damage, pay its employees, compensate the populations affected, and adhere to the Mining Code." He added that an investigation into the incident would take place. Congo, which accounts over 70% of global output of cobalt, frozen exports of the metallic in February to curb supplies and drive prices up. The authorities lifted the export ban on October 16 in order to resume exports based on a quota-system. Sources in the industry said last month that cobalt producers were still waiting on government approval before they could restart shipments. (Reporting and writing by Congo Newsroom, Anait Miridzhanian, Editing by Kim Coghill).
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Gunvor's asset bid should not be considered by the Kremlin, says Kremlin after Lukoil drops its bid
The Kremlin stated on Friday that the international interests of Russian oil giant Lukoil should be respected, after Swiss commodity traders Gunvor announced they had withdrawn their proposal to purchase Lukoil’s foreign assets. Gunvor made its move after the U.S. Treasury labeled it Russia's puppet and indicated that Washington opposes the deal. When asked about the latest development, Kremlin spokesperson Dmitry Peskov stated that it was a commercial matter, and that it related to illegal U.S. Sanctions on Moscow. However, it was vital that Lukoil’s interests be protected. Peskov said: "We are of the opinion that any legitimate interest of a large international company including a Russian, such as Lukoil in international trade and economic relationships must be respected." Lukoil had to sell off its foreign assets last month after the U.S. sanctioned the company along with Rosneft - another Russian oil giant. Washington claimed that the sanctions were part of a campaign to bring Russia to the table for negotiations over Ukraine. Lukoil is a company that has operations in countries as diverse As well as significant assets in post Soviet countries such as Kazakhstan, Uzbekistan, and Azerbaijan, there are also large amounts of money held by Finland, Switzerland and Iraq. (Reporting and writing by Gleb Stlyarov, Lucy Papachristou, Andrew Osborn).
As trade tensions ease, copper prices rise
The price of copper rose on Friday as a result of signs that trade tensions are easing between Washington and Beijing. This is despite the fact that China, which is the world's largest metal consumer, has reduced its imports. Benchmark three-month Copper on the London Metal Exchange rose 0.6% to $10,739 per metric ton at 1041 GMT. The 21-day moving-average at $10 776 was a strong resistance.
Metal used for power and construction is down 4% from its record high of 11,200 dollars on October 29, when fears about a tighter supply globally pushed the metal to that level.
Dan Smith, managing Director of Commodity Market Analytics, said that copper demand was still increasing, but it wasn't as strong as expected as of the previous month. The global macro-story is fairly good with solid PMIs. However, China's story got weaker in October due to weak PMIs and lower imports of copper. Official data revealed that China's copper exports fell 9.7% in October compared to the previous month, due to consumers' hesitations about restocking. Exports in China fell unexpectedly after months of a front-loading of U.S. orders. This was done to beat President Donald Trump’s tariffs. Imports grew at the slowest pace in five months. Freeport-McMoRan reported in a SEC document that Freeport Indonesia had restarted two mines within its Grasberg Copper Complex. Smith stated that LME aluminium and copper look "a little wobbly" in the short-term, with potential bearish signals coming from algorithmic computer models which place buy and sale orders based largely on fund movement signals.
LME aluminium increased 0.5% to $2.857.50 per ton. Zinc rose by 0.8% to $3,000, lead gained 0.6% to $1,045; tin rose 0.3% to $35,890, and nickel climbed 0.4% to $15 095. (Reporting and editing by David Goodman Additional reporting by Dylan Duan)
(source: Reuters)