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Copper prices fall on profit-taking before US inflation data
Prices of copper fell on Tuesday, as the expectation for rate reductions in the United States eased. This prompted a round of profit-booking. As of 0243 GMT, the most traded copper contract on the Shanghai Futures Exchange had fallen?0.36%?to 102,600 Yuan ($14,706.73) a metric ton. The contract reached a high of 104,800 Yuan during the session. This is close to the previous record of 105,500 Yuan, which was set last week. The benchmark three-month copper price on the London Metal Exchange fell 0.6% to $13,130 a ton. JP Morgan has said that it does not expect the Federal Reserve to reduce interest rates by 2026, after softer data on jobs. "Hopes for any rate cuts in the near future have been 'dashed. Pulling the trigger for a price pullback," said a Beijing-based trader under a condition of anonymity, as he was not authorized to speak to the media. Investors also waited for inflation data from the United States to determine interest rates this year. In the meantime, SHFE Tin extended its rally for a third consecutive day, and reached?its highest level since March 9, 2020 at 387.500 yuan, amid falling stocks. Analysts at Ruida futures stated that the tightening of spot supply was due to a fall in domestic production as a result of equipment maintenance at smelters. They said that the long-term demand for metals used in semiconductor manufacturing, as well as a positive outlook on future demand, helped to boost?prices. SHFE aluminium fell 0.12%. Nickel shed 0.57%. Lead dropped 0.35%. Zinc rose 0.81%. The price of other LME metals was not much different. Nickel gained 0.93%; lead fell 0.17%; tin rose 0.87% and zinc dropped 0.23%. $1 = 6.9764 Chinese Yuan (Reporting and editing by Amy Lv, Lewis Jackson)
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Exxon Mobil is still interested in visiting Venezuela despite Trump's rebuke
Exxon Mobil is still interested in visiting Venezuela, and it's prepared to send a team of assessors there, according to a source who knows the company strategy. This was reported on Monday, just a day after?U.S. Donald Trump has said that he may keep Exxon Mobil out of Venezuela. Darren Woods, Exxon's CEO, said that Venezuela had to change its laws and protect investment before Exxon was willing to operate in the country. Days later, Trump said to reporters aboard Air Force One that "he didn't like Exxon’s response," and that he would prefer to keep the oil major out. Sources said that Exxon executives had been surprised by these events because Woods told Trump that he thought the administration could help solve Venezuela's problems. Woods told Trump that Exxon would be able to send a team of technical experts to Venezuela within weeks to evaluate oil infrastructure and other assets. Exxon Mobil didn't immediately respond to our request for comment. The White House meeting was held less than one week after American forces had captured and ousted Venezuelan President Nicolas Maduro during an overnight raid. Trump has called on American energy companies to invest $100 billion in Venezuela's oil sector. Exxon ConocoPhillips, and Chevron, were the key partners of Venezuela's PDVSA state oil company before former President Hugo Chavez, between 2004 and 2007, nationalized it. Chevron has negotiated and agreed to stay in the country. ConocoPhillips, however, left and is now owed over $13 billion after long arbitration proceedings. Three industry experts have told us that Exxon and ConocoPhillips still face long-term challenges, even though they met Trump last week. Chevron, the only American oil company currently in Venezuela, emerged from the meeting with a better position, as it can invest more in its current operations to increase production. This was the opinion of a former oil executive. Energy analyst: "Exxon will not flinch if they are not first in line to get in," declining to discuss a client. He added that Trump's remarks would not influence long-term plans for any of the companies. American Petroleum Institute President, Mike?Sommers, said on Monday that the oil industry would have to undergo policy reforms and greater security measures before it could move into Venezuela. This includes measures ensuring contract sanctity. Sommers stated that debts from past asset?expropriations would be "a significant hurdle" for many companies who may be worried about investing in Venezuela's oil. He said that the energy assets of the country are large enough to attract interest, and he is confident the Trump administration will understand the industry's concerns. Sommers stated that the Venezuelan asset base is vast and its potential for investment very large. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
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Concerns about Iran's supply disruption drive up oil prices
The price of oil edged up on Tuesday as concerns about Iran and possible supply disruptions overshadowed the possibility of an increase in crude?supply coming from Venezuela. Brent futures rose 28 cents or 0.4%, to $64.15 per barrel, by 0101 GMT. They were hovering close to a two-month peak?achieved?in the prior session. U.S. West Texas Intermediate Crude rose by 28 cents or 0.5% to $59.78. This is the highest price since December 8, which was reached earlier in the session. Iran, a major producer of oil in the Organization of Petroleum Exporting Countries (OPEC), is experiencing its largest anti-government protests in many years. Donald Trump, the U.S. president, warned of possible military action if the violence perpetrated against the protesters was lethal. Trump is expected to meet with senior advisers to discuss options regarding Iran on Tuesday, according to a U.S. official. The U.S. President said Monday that any country doing business with Iran would be subject to a 25% tariff on all business conducted with 'the United States. The development is important for the?oil market as Iran is a major producer sanctioned and any escalation in tensions could disrupt supply, or add geopolitical risks. Barclays stated in a report that "unrest in Iran added approximately $3-4/barrel to the geopolitical premium on oil prices." The markets are also concerned about the additional supply of crude oil that will hit the market as Venezuela is expected to resume exports. Trump announced last week that, following the ouster President Nicolas Maduro's, the government in Caracas was set to deliver up to 50 million barrels (oil) to the U.S., which would be subject to Western sanctions. The global oil trading houses are ahead of the U.S. energy majors in the race to control Venezuelan crude flow. Geopolitical tensions have escalated in other places as Russian forces launched Kharkiv, located in the northeastern part of Ukraine, was one of two cities attacked early Tuesday morning, according to Ukrainian officials. The United States has a wide range of Trump administration The Federal Reserve has redoubled its attacks against the Federal Reserve. This has heightened concerns about the independence of the central bank and increased uncertainty regarding future economic conditions and the oil demand. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Jacqueline Wong)
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Johnson & Johnson's $1 Billion loss from the robotics takeover is reduced by Delaware's top court
Johnson & Johnson persuaded Delaware's highest Court to dismiss part of a $1 billion damages award due to its breach of a 2019 agreement to buy Auris Health - a manufacturer of surgical robots. In a?unanimous ruling on Monday, Delaware’s Supreme Court set aside a part of the September 20,24 award made to former Auris investors who claimed that Johnson & Johnson had failed to support Auris’ iPlatform Technology and was too slow in gaining regulatory approvals for bringing?devices onto the market. After recalculation, damages and interest could be reduced by several hundred million dollars. Fortis Advisors, the company representing the shareholders, has accused J&J for fraudulently?inducing Auris into accepting payments contingent upon achieving certain'milestones' instead of receiving more money upfront. The deal valued Auris's shares at $3.4 billion. Justice?Abigail LeGrow, in an 87-page ruling, rejected a Delaware Chancery Court judge's conclusion that Johnson & Johnson was under an implied obligation to seek approval for an iPlatform abdominal procedure product by the end 2021. The Supreme Court upheld the majority of Vice-Chancellor Lori Will’s findings and ordered that she recalculate damage. Johnson & Johnson of New Brunswick, New Jersey said that it was evaluating the next steps. The company stated that it was pleased with the decision of the court to reverse the trial judge's improper substitution for its subjective opinions the parties' carefully negotiated agreement regarding milestone regulatory requirements. "We are disappointed the court did 'not follow the contract language in allowing the remainder of the trial courts decision to stand." Philippe Selendy is a lawyer at Fortis. He said that the ruling showed?that Johnson & Johnson had "inexcusably violated the merger agreement" and deprived Auris of its transformative, life-saving, surgical robot. It also revealed the J&J fraud against Auris.
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How long can Wall Street ignore Trump's "visible hand"? McGeever
If the record high U.S. stocks prices accurately reflect the investors' assessment of Trump 2.0's first year, it is a glowing scorecard for the most intervening government in decades. The U.S. President, who has become the "activist in chief" of the markets, is yet another example of how the world's economy has gone topsy-turvy. He is questioning and even renouncing the global norms of the last 40 years. Under Donald Trump's leadership, the U.S. Government has taken direct equity stakes and demanded that CEOs be fired. It also tried to dictate compensation for CEOs. The government was assured of a cut in the exports of Big Tech chips, as well as a desire to fire Federal Reserve officials. Trump also ordered the purchase $200 billion in mortgage-backed securities and directed U.S. companies to conduct business in Venezuela. He tried to stop defense firms from purchasing back shares until they increased production. And he called for an annual cap on credit card interest rates, as his Justice Department threatened to indict Fed Chair Jerome Powell. That's all in the last week. INEFFICIENT MARKET HYPOTHESIS? Imagine an alternate future in which Kamala Harris had won the U.S. Presidential election in 2024 and was approaching her first year in office. She would have pursued a similar controversial set of unorthodox policy. Would the markets shrug this off so easily if Kamala Harris won in 2024? Investors would likely have reacted strongly to the news. There has been almost no turmoil in the real world since Trump's "Liberation Day", tariff announcement, which took place in April. Last year was indeed a record-breaking year for stocks, and other asset classes. According to HFR, hedge funds, which are not a fan of government interference in the private and free market, saw their assets under management reach $5 trillion. William Henagan is a research fellow with the Council on Foreign Relations. He agrees that it's a bit of a "conundrum", given the Trump administration's interventionist approach towards Wall Street and Main Street. Henagan asserts that investors don't necessarily perceive the market interventions to be a substantial erosion of the rule of law or property rights which underpin the financial markets and economic system. Perhaps public markets aren't the most efficient or all-seeing. Investors ignore erosion of these fundamentals at their peril. CASE FOR THE DEFENSE The answer to the question "How confident are you in the market?" is usually binary. Investors are confident in the market structure and financial system as long as they remain so. Government intervention in the market economy is not a new thing, and it is also not a bad idea. Many sectors are in favor of it. It can be necessary for reasons like national security, energy safety, or providing a social security net. A year into Trump's second tenure, the "visible" hand of the president can be felt by many parts in USA Inc., pushing aside the invisible market hand posited by Adam Smith, an eighteenth century economist. Trump's capriciousness is still capable of causing volatility, however. Lockheed Martin shares fell 7% on Wednesday night after Trump announced he would stop defense companies from paying dividends or buying back stock. They then recovered 8% after-hours when Trump demanded that the defense budget be increased by 50% to $1.5 trillion. The broader market is continuing to rise, apparently unaffected by what has been the most interventionist government in decades. Wall Street did lag behind its global counterparts last year, but not by much. This could be a sign of Trump's visible hand unnerving investors. But, at least for now, there is no flashing warning light. You like this column? Open Interest (ROI) is your indispensable source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Officials in Ukraine claim that Russian missiles have struck Kyiv and killed one person in Kharkiv.
Ukrainian officials reported that Russian forces attacked two of?Ukraine?s?largest?cities early on Tuesday morning, killing one in Kharkiv, a city located to the northeast. Tymur Tkachenko is the head of Kyiv’s military administration. He said that missiles were attacking the capital. Mayor Vitali Klitschko confirmed that air defences are in operation. Witnesses heard "explosions" in the city but no word was immediately available on injuries or damage. Oleh Syniehubov, the Regional Governor of Kharkiv (which is 30 km from the Russian border, and is also a popular Russian target), said that one person had been killed in an attack on a outskirts. Syniehubov claimed that three people had been injured. Reporting by Valentyn OGIRenko in Kyiv, Lidia Kelly in Melbourne, and Ron Popeski. Editing by David Gregorio.
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Sources say that Trafigura and Vitol offer Venezuelan crude oil to Indian and Chinese refiners in March for delivery.
On Monday, several sources reported that Vitol and Trafigura had begun discussions with refiners from India?and China about the sale of Venezuelan crude oil for cargoes due to arrive in March. Global commodities traders confirmed Friday that they had reached agreements with the United States. The?government will help market Venezuelan oil that is stranded, just days after the interim Venezuelan government agreed to export 50 million barrels to the U.S. Their marketing efforts are expected to accelerate the sale and purchase of Venezuelan oil through the U.S. program, allowing OPEC producers to resume their exports that have been halted ever since President Nicolas Maduro was ousted. Trafigura CEO says it will load the first cargo for the U.S. in this week. PETROCHINA INDIAN RIFFINERS Two sources said that Vitol was approaching Indian refineries to sell oil. One of the sources?said that a trader had offered a cargo to ICE Brent at a discounted price of $8-$8.50 per barrel on a delivered basis. Sources told us last week that refiners Indian Oil Corp. and Hindustan Petroleum Corp. would be interested in buying Venezuelan crude oil. Both have not responded to our requests for comment. Reliance Industries said that it would re-consider a return to Venezuelan crude purchases if the sale of Venezuelan oil to non-U.S. customers is permitted by U.S. regulations. Three sources claim that Vitol, Trafigura, and PetroChina have all approached PetroChina to explore interest. PetroChina was a major purchaser of Venezuelan Merey heavy sour crude oil as well as fuel before the U.S. sanctioned began, they said. One of them stated that traders should first approach the large state oil traders, rather than teapots. Independent refiners are usually those who buy sanctioned cheap oil in China. PetroChina didn't immediately respond to our request for comment. Vitol refused to comment. Trafigura said it provides logistical and marketing support to facilitate the sale Venezuelan oil but declined to comment. Second-Half March Delivery A second source confirmed that Vitol and Trafigura have cargoes available for delivery during the second half of march. Shipping data on Kpler revealed that Vitol had loaded the first cargo of naphtha to Venezuela from the U.S. onto the Panamax-sized Hellespont Protector on Sunday. The ship is expected to arrive in the Port of Jose, Venezuela, on January 28. Venezuelan heavy crude oil is thinned with naphtha to make it easier to transport and process. The imminent return of Venezuelan oil has offset fears of a possible supply disruption in Iran that could cap gains on global oil futures. (Reporting from Nidhi verma in New Delhi; Siyi Liu in Singapore, Chen Aizhu in London, and Shariq Khan at New York. Additional reporting by Julia Payne and Shariq in New York. Editing by Jan Harvey.
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After over a decade, Australia's Lynas rare earths CEO will retire
After 12 years, Lynas Rare Earths, an Australian company, announced that its Chief?Executive Officer and Managing Director, Amanda?Lacaze was retiring. Lynas, in a press release, said that the board had already started a search for a new leader to take over as 'the world's largest producer of rare earths outside China. The company said that Lacaze will remain with them until the end of the current fiscal year to ensure a smooth transition. Lacaze became the chief of the company in 2014, after working as a nonexecutive director for the miner. Lynas has become a dominant player in the production and sale of rare earths elements under her leadership. The stock price has increased more than 12 times since she became CEO. According to LSEG, its market capitalization has risen from A$15 'billion ($10.06 bn) to A$15 'billion (about $10.06 mn). Lacaze was previously the managing director of marketing for Telstra, Australia’s largest telecom company, and held positions at Nestle.
Dalian iron ore prices rise on demand for restocking ahead of Lunar New Year
Iron ore futures in Dalian edged up on Tuesday due to a restocking of steelmakers' stocks by the top consumer, China, ahead of the Lunar New Year holiday.
As of 0255 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange was 0.24% higher. It stood at 823.5 Yuan ($118.06), per metric ton.
The benchmark iron?ore for February on the Singapore Exchange fell 0.26% to $108.9 per?ton.
According to a report from the consultancy Mysteel, global iron ore shipment from Australia and Brazil dropped?by 1,36 million tons on a week-to-week basis, but total volume arriving in China grew by?1.903 millions tons.
Mysteel's data from January 12 shows that inventories are still growing, but at a slower pace than in previous years. Stockpiles of 247 steel mills were lower than they had been.
The Shanghai Metals Market stated in a report that restocking ahead of the Lunar New Year will provide strong support for ore prices. However, high port inventories and abundant spot supply could limit the upside.
Coking coal and coke, which are both steelmaking ingredients, were up 0.16%, down 0.16 %, or unchanged.
The steel benchmarks at the Shanghai Future Exchange were mostly positive. Rebar rose 0.28%. Hot-rolled coils grew 0.36%. Stainless steel gained 0.18%. Wire rod dropped by 2.16%. ($1 = 6.9755 yuan) (Reporting by Ruth Chai; Editing by Subhranshu Sahu)
(source: Reuters)