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Copper prices fall as demand worries rise due to weak Chinese data
Copper and industrial metals fell on Friday, after weak economic data in China's top consumer fueled concerns about demand. Hopes of another Federal Reserve rate reduction this year also faded. The benchmark three-month price of copper at the London Metal Exchange fell 0.6%, to $10,890 a metric ton, as of 1026 GMT. It had fallen as low as $10,000.25 earlier in the day. Metal used in construction, manufacturing and power was still on track for a gain of 1.6% per week, after briefly crossing the $11,000 mark Thursday. On October 29, copper reached its all-time high of $11,200. Analysts at brokerage Sucden Financial wrote in a report that they expect previous highs to act as strong resistances as the markets struggle to find fundamental catalysts powerful enough to sustain an ongoing breakout. "We anticipate a short-term period of consolidation, especially if fundamental conditions do not change." In October, China's factory production and retail sales increased at the slowest pace for over a decade. This put pressure on policymakers who are responsible for revamping this $19 trillion export driven economy. The Shanghai Futures Exchange reported on Friday that copper inventories in warehouses it monitors fell 4.9% compared to a week earlier, reaching 109,407 tonnes. As a result, the chances of an interest rate reduction in December have dimmed. A growing number of Fed policymakers are signaling reluctance to ease further. The entire LME Complex was in the red. Aluminium dropped by 1.4%, to $2,856.50 per ton. Zinc fell by 1.1%, to $3,021. Nickel dropped 0.9%, to $14,845, its lowest level since August 1. Tin fell 0.6% to $ 37,005 while lead dropped 0.4% to $1,069.50. Sucden Financial stated that "apart from tin, zinc and nearby spreads, near-by spreads are still in contango. This suggests availability of deliverable materials and limited tightness at the front end of the curve." Reporting by Tom Daly. Lewis Jackson and Dylan Duan contributed additional reporting. Subhranshu sahu, Mark Potter and Subhranshu sahu edited the article.
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The central bank of Romania has raised its inflation forecasts for 2019 and 2026
The Romanian central bank has raised its inflation forecasts both for this year as well as next, and said that discussions about an interest rate increase will not take place before the summer of next year. Bank of England expects the inflation rate to reach 9.6% in December. This is higher than its previous estimate of 8.8%, due to higher electricity costs and increases to VAT and excise duty earlier this year. Isarescu stated that power prices and tax increases would make up just under five percent of 2025's headline inflation. By 2026, the headline rate will fall from 3.0% to 3.7%. The benchmark interest rate was held at the European Union’s second-highest level of 6.50% by policymakers on Wednesday. They warned that inflation would only return to its target range of 1.5%-3.5% in the first quarter 2027. This is later than expected. Isarescu said to reporters that "talking about a rate cut or a rate reduction is not helpful at this time." "We won't make such a misstep. We'll see what happens with inflation. "We have a lot of uncertainty." He initially said that he thought the interest rate increase would be in the summer or spring of next year. Later, he stated that it was more likely to happen in the summer. The bank held its interest rates through this year, despite the fact that the EU's biggest budget deficit was reduced by tax increases and the rerun of an canceled presidential elections. The deficit-lowering measures helped to avoid a downgrade of the ratings from investment grade, and stabilized debt yields that are now lower than Hungary's. However, they also depressed demand, even though more fiscal corrections needed. Isarescu stated that the economic growth this year could be around 1% and that an imbalance in domestic demand was behind the bank's forecasts for inflation. It was difficult but relatively quick to regain the trust of international markets. "The correction programme must be continued." The correction programme must continue."
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ADNOC's Covestro deal gets conditional European Commission greenlight
The European Commission announced on Friday that ADNOC, the state oil company of Abu Dhabi, has received conditional approval from the EU for its bid of 14.7 billion euros ($17 billion) for German chemicals firm Covestro. The approval was conditional on the full compliance of the commitments made by both parties, which included ADNOC's proposal to adapt its articles of Association and the sharing of Covestro patents in sustainability with other market participants. Last week, people with direct knowledge of this matter said that they expect the deal to be approved. According to an update posted on the Commission's website last Wednesday, the Commission, the EU’s competition enforcer and regulator, restarted their investigation into the deal after stopping the clock September 3 while awaiting requested information. ADNOC offered last month to amend its articles of Association to address EU concerns about its unlimited state guarantees, and pledged to maintain Covestro’s intellectual property throughout Europe. The company then tweaked this element in response to feedback from customers and rivals. ADNOC has acquired Covestro, its largest acquisition to date. It is also one of the biggest foreign takeovers by a Gulf State of a company in the EU. This deal has raised EU concerns about the possibility that state subsidies were used.
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Gold drops as Fed cuts fade amid hawkish Fed comments
Gold prices sawsawed Friday, as hawkish remarks from U.S. Federal Reserve officials lowered prospects for a rate cut in December. However, they were still set to make a gain for the week due to wider economic uncertainty. As of 1044 GMT spot gold was down by 0.1%, at $4,166.91 an ounce. It had earlier reached $4,211.06 per ounce. Bullion has risen 4.2% this week. U.S. Gold Futures for December Delivery fell 0.6% to $ 4,170.10 an ounce. The cautious mood on financial markets is helping to support gold prices. However, there are growing doubts that the Federal Reserve will cut rates in December due to the lack of new economic data, said ActivTrades Analyst Ricardo Evangelista. After a 43-day record shutdown, which disrupted the flow of important economic data, the U.S. Government reopened. White House, on the other hand, has tempered expectations for clarity in regards to the economy by stating that it is possible that October's employment data will not be available. Evangelista stated that "gold may also face pressure from the closing of positions to meet margin demands triggered by falls in equity markets." The equity markets fell on Friday following the global selloff caused by Fed hawkish signals. Some Federal Reserve officials have given their opinions on the rate-cutting expectations by citing inflation concerns and the relative stability of labor markets following two rate reductions earlier in the year. CME Group's FedWatch tool shows that traders see a probability of 49% for a rate cut by a quarter point in December. This is down from 64% this week. Alex Ebkarian is the COO of Allegiance Gold. He noted, however, that as the shutdown costs become clearer and spending increases, "the inflation plus uncertainty growth regime favors precious metals". Gold that does not yield a return tends to do well in periods of economic instability and low interest rates. The physical gold market in major Asian markets has been subdued as high prices have curtailed purchasing activity. In India, discounts reached their highest level for five months. Silver spot rose 0.8%, to $52.68 an ounce, and is on course for its best weekly performance since September 2024. Palladium fell 0.5%, to $1420, and platinum dropped 1.3%, to $1559.70. (Reporting and editing by PhilippaFletcher, Harikrishnan Nair, and Anmol Choubey from Bengaluru)
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BHP is liable for the 2015 Brazil dam collapse: UK court rules on mammoth suit
The High Court of London ruled that BHP is liable for the collapse in 2015 of a dam located in the southeast region Brazil. This ruling was made in a case which lawyers representing the claimants had previously estimated at up to 48.32 billion pounds (36 billion pounds). BHP was sued by hundreds of thousands of Brazilians as well as dozens of local governments, and about 2,000 companies, over the collapsed Fundao Dam in Mariana (southeastern Brazil), which BHP's joint venture with Vale, Samarco, owned and operated. Brazil's worst ecological disaster released a toxic sludge wave that left 19 dead, thousands homeless, inundated forests, and polluted the entire length of the Doce River. In her ruling, Judge Finola O'Farrell stated that the continued raising of the height of dam even though it was unsafe was "direct and immediate" cause of its collapse. This means BHP is liable according to Brazilian law. BHP announced that it would appeal the ruling and continue the litigation. Brandon Craig, BHP's Minerals Americas President, said in a press release that "240,000 claimants" in the London case had already received compensation in Brazil. He added: "We think this will reduce the value and size of the claims in the UK collective action." ($1 = 0.7451 pound) ($1= 5.4039 reais). (Reporting and editing by Sarah Young, Kate Holton, and Sam Tobin)
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UN Rights Council considers fact-finding missions in emergency session on Sudan
On Friday, the U.N. Human Rights Council held a special session to discuss the situation in al-Fashir in Sudan. States will be considering a request for an investigation into the reported mass murders that occurred as the city of Darfur fell under paramilitary control. A draft resolution would include a fact-finding investigation to identify those responsible for alleged violations committed in al-Fashir by the Rapid Support Forces (RSF) and their allies. In his opening remarks to delegates, U.N. Human Rights Chief urged the international Community to Act. "There's been too much show and pretense, but too little action." "It must stand against these atrocities, a display displaying naked cruelty that is used to subjugate an entire population," said U.N. Human Rights High Commissioner Volker Turk. Rogue actors, not the RSF, are responsible for such actions. UN RIGHTS CHAIR WARNS OF SURGERY VIOLENCE IN KORDOFAN Turk called for actions against those "fuelling" and "profiting" from war in Sudan. He also issued a warning regarding the escalating violence in central Sudanese Kordofan region, where people are being forced to leave their homes and bombardments and blockades have been imposed. Kordofan, a region made up of three states, is used as a buffer zone between the RSF-held western Darfur and the army-held eastern states. The RSF's control over the Darfur region was cemented by the fall of al-Fashir on October 26, a year after the civil war began with the Sudanese Army. The draft text that is being considered by the council strongly condemns reports of ethnically motivated killings and the use of rape by RSF and its allies in al-Fashir. The international community has not taken any action to investigate the role of the external actors that may be supporting RSF. This was criticised by the ambassador of the permanent mission of Sudan to Geneva, who said his country faces an "existential conflict" as a result of the failure to act. Hassan Hamid Hassan stated that "We warned all over the U.N ....calling to pressure the rebel militia, and the country who is sponsoring them with military equipment. I mean the UAE." UAE STRONGLY denies support for RSF Sudan's Army has The United Arab Emirates are accused of providing weapons to the RSF. Jamal Al Musharakh, the UAE ambassador at the U.N. Geneva office on Thursday, categorically denied claims that the UAE provides any support to either side in the conflict. The United Kingdom and the European Union as well as Norway and Ghana have expressed their support for this resolution. They strongly condemned the violence in Sudan which, they warn, could threaten regional stability. "Staying quiet is not an option...The Council should send a clear signal that impunity will be not tolerated", said Kumar Iyer. He was the ambassador of the permanent mission to the United Kingdom at Geneva. The resolution calls on the RSF to ensure that life-saving aid reaches the people trapped in the famine-stricken city. Women who fled the city reported systematic rape and killings, while others described drone attacks and civilians being attacked on the street. (Reporting and editing by Aidan Lewis, Sharon Singleton, Emme Farge. Additional reporting by Olivia Le Poidevin.
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Ethiopian Investment Holdings signss agreement with Rusal for an aluminium plant
Ethiopian Investment Holdings announced on Friday that it had signed a preliminary contract with Rusal for the establishment of a large-scale aluminum smelter in Ethiopia. This is the latest major investment in Ethiopia. Ethiopian Investment Holdings announced in a press release on its X Account that the proposed facility will have a production capacity of 500,000 metric tonnes per year. The first phase is estimated to cost $1 billion. The investment firm stated that the project covered by this memorandum will be completed in three to four year and will operate for up to fifty years. Ethiopian Investment Holdings stated that preliminary activities, including site identification and an extensive feasibility study, are already in progress to ensure a timely progression. Rusal has declined to comment. Ethiopia and Nigeria’s Dangote Group in August signed an agreement for the construction of a $2.5 Billion fertiliser manufacturing facility in Ethiopia’s south-east. In September, Russia signed a plan of action with Ethiopia for the construction and development of a nuclear plant. (Reporting and editing by Jan Harvey; Additional reporting in Moscow by Anastasia Lyrchikova; Reporting by George Obulutsa, Vincent Mumo Nzilani)
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Newspaper reports that the ACC, backed by Stellantis, will scrap plans for Termoli's gigafactory.
The Stellantis-backed ACC Joint Venture is "definitely" giving up plans for a megafactory in eastern Italy. This was reported by the newspaper MF on Friday. MF said that a decision on the Termoli plant, which ACC had designated as one of three European hubs for electric vehicle batteries, should be made by the end of this year or early in 2026. Italian newspaper cites sources to report that the project "is not sustainable due to technical, strategic, and financial difficulties". ACC continues to assess its investment plans in Italy, as well as in Germany. The goal is to make a decision by the end of the year. Mercedes and TotalEnergies also own shares in the joint venture. Termoli, a plant that makes Stellantis petrol engines, was originally one of three ACC plants planned in Europe. One plant has started operating in France, while another is on hold in Germany due to the slow market demand for electric cars. The spokesman stated that "ACC, while awaiting the completion of its assessment of investment, is focused on driving manufacturing efficiency and competition in its gigafactory at Billy-Berclau in France." He added that approximately 10,000 vehicles were already equipped with ACC battery one year after the production began.
Gold gains shrink as Fed cuts hopes fade following hawkish Fed comments
Gold prices pared gains earlier on Friday, as hawkish remarks from U.S. Federal Reserve representatives clouded the prospects for a rate cut in December. However, they remain set for a week-long gain supported by wider uncertainty.
As of 0930 GMT spot gold remained steady at $4169.58 an ounce after reaching $4211.06 earlier during the session. Bullion has risen 4.3% this week.
U.S. Gold Futures for December Delivery eased by 0.2% to $4.185.90 an ounce.
The cautious mood on financial markets is helping to support gold prices. However, there are growing doubts that the Federal Reserve will cut rates in December due to the lack of new economic data, said ActivTrades Analyst Ricardo Evangelista.
After a 43-day record shutdown, which disrupted the flow of important economic data, the U.S. Government reopened. White House, on the other hand, has tempered expectations for clarity in regards to the economy by stating that it is possible that October's employment data will not be available.
Evangelista stated that "gold may also face pressure from the closing of positions to meet margin demands triggered by falls in equity markets."
The equity markets fell on Friday following a global sell-off triggered after hawkish Fed signalling.
Some Federal Reserve officials have given their opinions on the rate-cutting expectations by citing inflation concerns and relative stability in the labor market following two rate reductions earlier this year.
CME Group's FedWatch tool shows that traders see a probability of 49% for a rate cut by a quarter point in December. This is down from 64% this week.
Alex Ebkarian is the COO of Allegiance Gold. He noted, however, that as the shutdown costs become clearer and spending increases, "the inflation plus uncertainty growth regime favors precious metals".
Gold that does not yield tends to do well in periods of economic instability and low interest rates.
Silver spot rose 0.9%, to $52.78 an ounce, and is on course for its best weekly performance since September 2024.
Palladium fell by 0.8% on Friday to $1,414.94, while platinum dropped 0.7% to 1,569.85. (Reporting and editing by Philippa Feletcher in Bengaluru, Anmol Choubey from Bengaluru)
(source: Reuters)