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Swedish government to buy majority stake in Videberg Kraft
The Swedish government announced on Friday that it intends to 'take a 60% share in the nuclear development company, 'Videberg Kraft. It is looking to start construction of a newest generation of reactors to replace its old atomic power plants. The government said that nuclear power was vital for meeting the expected increase in electricity demand as industries and transport sectors move away from fossil fuels. The critics say that renewables such as onshore wind are cheaper and quicker to construct. "Sweden has a nuclear nation." In a recent statement, Deputy Prime Minister Ebba busch stated that the government is now clarifying its role and responsibility in the development of nuclear energy. The government said that it would ask the parliament for approval to purchase shares in Videberg Kraft as well as a capital infusion at a cost of approximately 1.8 billion Swedish crowns (about 195 million dollars) in the near future. The government will also seek an?order for funding to the company in the amount of up 34.4 billion dollars during the construction period for new reactors. Videberg Kraft, owned by Swedish energy group Vattenfall to 80% and a group of Sweden’s largest companies to 20% by a group. The government wants Sweden to build the equivalent of 10 full-size nuclear reactors to replace the six that are currently operating by 2045. The government is offering cheap loans to developers and price guarantees for 5,000 MW to overcome the unwillingness of the private sector to fund new reactors. Recent builds in France and the UK have been 'hit with massive cost overruns and delays. Vattenfall’s 'Videberg Kraft' subsidiary is planning to build several small modular reactors with a combined capacity of around 1,500 Megawatts at its Ringhals Nuclear Facility in south-west Sweden. It applied for funding in December. Sweden's electricity generation is largely fossil-free. Around 40% of the power comes from hydroelectric power, while 29% is from nuclear power, 21% wind power, 8% thermal power, and 2% solar power.
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US consumer sentiment plunges to record low in April amid Iran War
A survey released on Friday showed that U.S. consumers' sentiment fell to a "record low" in early April and they expect inflation to rise?in the coming 12 months. Surveys of Consumers at the University of Michigan reported that its Consumer Sentiment Index fell to a new low of 47.6 in April, from a final reading of 53.3 last month. Economists surveyed by had 'predicted the index to ease to 52.0. The survey found that the decline in'sentiment' was a result of age, income, and political party membership, but noted?that most responses were made before a ceasefire agreement negotiated earlier this week between the U.S., Israel, and Iran. Oil prices have risen by over 30% since the start of the war. The national average retail price for gasoline has surpassed $4 per gallon, the highest it's been in three years. Joanne Hsu is the director of Surveys of Consumers. She said, "Open ended comments shows?that many consumers are blaming the Iran conflict for unfavorable economic changes." Inflation expectations by consumers for the coming year increased from 3.8% to 4.8%, up from March's 3.8%. Consumers' expectations of?inflation in the next five-year period rose from 3.2% to 3.4% last month. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
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Weekly gain on gold heads, US-Iran truce at the forefront
The gold price rose a little bit?on Friday, and is on track for a weekly increase as the U.S. The?dollar weakened after the U.S. - Iran truce. Market participants continue to assess whether it will last and what its implications are for interest rates. As of 9:29 am, spot gold was up 0.3% at $4,778.89 an ounce. ET (1329 GMT). This week, it has gained more than 2%. U.S. Gold Futures dropped 0.3% to $4804.00. The?tentative truce has helped gold buyers to reclaim the narrative. Each day, they are achieving higher lows. "There will be a major battle before $5,000. A break above that level could reignite the bull market," said independent metals trader Tai Wong. The ceasefire, which has been in place for two days, has stopped a U.S.-Israeli air campaign against Iran. However it is yet to relieve the Strait of Hormuz blockade or calm a parallel conflict between Israel and Iran's Hezbollah ally in Lebanon. David Meger is director of metals at High Ridge Futures. Gold priced in greenbacks is now cheaper for those who hold other currencies. The?war increased?oil price and tariffs continued to pass through, according to data. A persistently high level of inflation restricts the ability of central banks to reduce interest rates. Although bullion can be viewed as a hedge to inflation and geopolitical unrest, its appeal dwindles in an environment of high rates due to the lack of yield. Gold demand picked up in India a little 'this week, ahead of an important festival. However, the high prices dampened sentiment. In China, premiums were also reduced. Silver spot rose by 1.7% per ounce to $76.34, platinum fell 2.5% at $2,050.99 and palladium dropped 2.5% at $1,518.66. All three metals are expected to post gains this week. Ashitha shivaprasad reports from Bengaluru, Ni Williams edits.
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South Korea approves an extra $17.7 billion budget to cope with Iran War
South Korea's Parliament approved a supplementary budget for the government of $26.2 trillion won (17.7 billion dollars) on Friday in order to reduce the domestic economic impact of the Iran War. The government's initial proposal in late March is the second additional budget under President Lee Jae Myung's liberal administration, who assumed office in June 2025. The government intends to implement the "extra budget" as soon as it can to minimize the economic shock?caused by a rise in oil prices. The package includes Lee’s consumer voucher handout program, which provides payments from 100,000 won up to 600,000 won per person, for those who earn the lowest 70% of income. Budget also includes funding to maintain national fuel price caps introduced last month, for the first time for nearly three decades. This is for about six months in a country whose energy supply is almost completely imported. South Korea's consumer inflation accelerated in March amid high oil prices. Policymakers warned of potential risks for the future. The?costs of imports increased at the fastest pace since September 2022. The central bank of the country held interest rates steady on Friday. It maintained a cautious stance, as the conflict in Iran threatens inflation and growth. $1 = 1,482,5000 won (Reporting and editing by PhilippaFletcher; Kyu-seok? Shim, Jihoon Lee)
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Investors balance Iranian and Chinese demand as copper claws reach a three-week high
On Friday, copper prices reached their highest level in over three weeks as investors weighed up signs of increased demand from China's top metals consumer against the uncertainty surrounding a fragile ceasefire during?the Iran War. In official open-outcry trade, benchmark three-month copper on the London Metal Exchange rose 0.6% to $13,755 per metric ton and reached its highest level since March 17, at $12,845. The week was expected to close with a gain of about 4%. LME copper rose 1.2% after the official rings, when a Federal Reserve official stated that a rate reduction was possible if oil prices fell. LME copper is up 10% since March 23 when it fell to its lowest level in three months on hopes that the Middle East war would end. Ole Hansen is the head of commodity strategy for?Saxo Bank, Copenhagen. He said: "I do not think that there's a desire to invest in commodities where there's a risk of deterioration?ahead?of those negotiations in Islamabad." Investors were cautious as a fragile ceasefire agreement between the U.S., Iran and other countries that has been in place for two weeks showed signs of strain on Friday. This was a day before negotiations are scheduled to take place in Pakistan. Markets were supported by signs that demand was improving in China. Copper inventories in SHFE-monitored warehouses fell 11.5% in the past week after falling 37% in the last three months. Data showed that the Yangshan copper price premium, which represents demand for copper imported to China, has risen to $73 per ton. This is its highest level since June of last year. Hansen explained that "even though there is concern about Iran, actual numbers on the ground point the opposite direction. The market tries to navigate between these two elements." He added that the key technical resistance to the upside is $12800. This is based on the retracement of February and March, as well as the?50 day moving average. The copper price rose to its highest level since December 2013 despite a new increase in LME inventories. LME aluminium official activity rose by 1.1% to $3,482.50 per ton as the ongoing closure of the Strait of Hormuz brought to light?supply problems in the Gulf which account for?about 8% of the global production. Nickel gained 0.5% at $17,175 while tin increased 0.7% to 48,000.
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The Lithium Bulls are set to crash the Copper Party in Chile
Chile will break from 'precedent' and host a panel on lithium at its annual global gathering of copper next week, in an effort to radically diversify its economy beyond the red metal which has been?powering it for decades. On Monday, the World Lithium Conference, organized by the International Lithium Association and the consultancy 'CRU', will launch what the copper industry calls CESCO Week. After months of stagnation, lithium prices have risen to levels not seen in two years as renewed interest in the metal is sparked by concerns about oil supplies in the Middle East. The lithium supply is tightening as a result of the closing of a major mine in China, the export ban in Zimbabwe and the dwindling stocks in lithium carbonate. According to the U.S. Geological Survey, Chile is home to 13 million tonne of lithium, the third largest in the world after Argentina and Bolivia. NEW PRESIDENT, NEW EXPECTATIONS Five mining companies including Rio Tinto are vying for rights to develop the country's vast deposits. The new Chilean president, Jose Antonio Kast is spoilt for choices. Ignacio Mehech is CEO of CleanTech Lithium. He said, "The lithium strategies rolled out by 2023 were a good direction. We hope the new government will take it up, and make?it easier and faster to award contracts." CleanTech, a London-listed company, has received a licence to produce lithium. However, it needs to obtain an environmental permit before mining. It is raising money to build a $750m mine at the edge of the rich lithium-rich Salar de Laguna Verde. DEMAND FOR MORE MINE AND MORE MINES According to CRU, there is a strong movement behind lithium. The number of active mining operations has doubled in the last four years, and will reach 80 mines by 2026. Martin Jackson, CRU's director of lithium and batteries, stated that the demand for stationary lithium batteries is continuing to increase, which helps to offset the weakness in EV markets. He said that lithium will continue to be the most competitive energy-density technology for many years. According to CRU the average lithium carbonate price in China is expected to be around $22 per kilo this year. This represents a 135% increase from last year. Investors are also optimistic. Macquarie, an investment bank, estimates that global lithium demand is expected to increase by over 20% a year until the end of this decade. This will be due to energy storage demand. Asad Farid is the director of?J's strategic materials equity funds. Safra Sarasin Sustainable Asset Management. US-CHINA TENSIONS WEIGH Chile's diversification of its lithium industry comes at a moment when tensions between China, the U.S. and other natural resource rich regions like South America are "spilling over". China's share of the global lithium market has increased steadily over the last four years from 75% to almost 90%. The Guangzhou Futures Exchange lithium price has become a benchmark for the industry. Chile has already tasted the diplomatic balancing act that is required when it pursues the China Mobile-backed fiber-optic connection between the wine-town of Valparaiso, and Hong Kong, despite U.S. opposition. "With President Trump's current approach, we may have to think twice about going for Chinese investors," said Marcelo Adwad. A mining veteran from Chile, he advises?Wealth Minerals a Toronto Stock Exchange listed lithium company. Wealth Minerals has been in talks with India’s state-run Coal India Limited regarding a possible joint venture and is seeking investors for its $750m lithium mine. Some people believe Chile should maintain its neutrality. Mehech, CleanTech's CEO, said that Chile could not afford to pick one country. Reporting by Fabian Cambero in Toronto, Divyarajagopal in London, and Tom Daly, with editing by Veronica Brown and Ernest Scheyder.
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As US rate-cut betting rises, gold is set to gain for a third consecutive week but will edge lower.
The gold?prices dipped, but remained on a?track to a third consecutive?weekly - gain, as the markets reassessed if there would be a U.S. rate cut if the fragile U.S. - Iran ceasefire held. By 1113 GMT, spot gold was down 0.2% at $4755.45 an ounce. This week, it has risen by 1.7%. U.S. Gold Futures for June Delivery fell by 1.1% on Friday to $4,767.30. Dollars were set to drop by 1.4% per week, which made bullion in that currency more affordable for holders of currencies other than the dollar. The UBS analyst Giovanni Staunovo said that the announcement of the ceasefire caused the market to sell oil, causing inflation expectations to fall. Rate cuts were also priced in this week. Inflation and rate cuts are in question Oil prices rose on Friday, driven by concerns over disruptions of Saudi Arabian supplies. Still, they faced a?a 12% drop in one week. This is the biggest weekly fall since June 2025. The spot gold price has dropped about 10% since the beginning of the war against Iran on February 28. High energy prices have led to expectations of inflation and higher U.S. rates of interest, which is a disincentive for holding non-yielding gold. According to CME's FedWatch Tool (a tool that tracks interest rates), investors expect at least one rate reduction by December, up from just 12% in the previous week. The conflict in the Middle East will continue to influence the system. Staunovo stated that he still had a positive outlook for the long term because of all 'the structural factors which remain in place. Iran's near-total blocking of the Strait of Hormuz is not lifting. Tehran cites Israel's ongoing attacks on Lebanon which included the most heavy strikes of the war on Wednesday as the sticking point. The markets are also focusing on the March U.S. Consumer Price Index, which is due later that day, for further clues about the?Fed?s monetary policy. In India, gold demand has risen slightly. Premiums in China have decreased as the retail market in China slowed. (Reporting by Ishaan Arora in Bengaluru; Editing by Barbara Lewis and Jan Harvey) (Reporting from Bengaluru by Ishaan arora; Editing by Barbara Lewis & Jan Harvey).
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SpaceX's $1.75 Trillion price tag: An unconventional rationale
Wall Street uses some unconventional yardsticks in order to value 'Elon Musk’s SpaceX. One of SpaceX's largest institutional investors benchmarks the rocket and satellite firm not against aerospace competitors like Boeing or telecom titans like AT&T but against AI infrastructure players like GE Vernova, Vertiv and Palantir Technologies in a bid justify a $1.75 billion valuation ahead of the biggest IPO ever. A source familiar with SpaceX's thinking described the framework to me?for the very first time. It illustrates the unusual challenge of valuing a company without obvious public competitors - and how far Wall Street will go to justify a premium valuation. SpaceX filed for a U.S. IPO in secret, according to a report last week. As previously reported, the company will hold an analyst's day on April 21. SpaceX's potential $1.75 trillion valuation is expensive by most traditional measures. This includes comparisons with the earnings and revenues multiples of firms that are often used as references for its business. Boeing and Lockheed Martin's joint venture United Launch Alliance, which competes with SpaceX for launch services, are the peers in space. AT&T, Verizon and other internet service providers would be the peers in this case. Financial backers of SpaceX, which is on track to raise 75 billion dollars in an IPO in this year, argue that comparisons with established firms in legacy industries miss the point. They say SpaceX and Musk's other companies are positioned to benefit from long-term "secular economic shifts" at a time where few competitors have the ability to do so. Musk's companies are known to command high multiples, in part due to?investors betting on him personally. Tesla is the most obvious example. And SpaceX investors anticipate that this dynamic will carry through into any public offering. SpaceX CFO Bret Johnson told IPO banks on a recent conference call that it was "pretty exciting" to be able to sell into the "largest total addressable market" in human history - a $370 billion potential space business. According to the sources, Bret Johnsen estimated the market potential for Starlink's internet service as $1.6 trillion. SpaceX has not responded to a comment request. RETHINKING COMPARABLES The fierce debate about the price of SpaceX's massive IPO is centered on finding the right comparables. Bankers and investors are struggling to determine the value of the company, despite the fact that there are few or no closely comparable public counterparts. Investors and bankers often sort comparables by industry, based on the assumption that this is a good way to measure financial risk and opportunity. Many investors believe that companies need not be in the same sector to be comparable. They say it is more important for them to compare cash flow, growth and risk profiles. According to this approach, a better comparison is made with companies that are selling into AI data-center buildsout. These companies have been famously rewarded by rising share prices and high multiples. Jay Bala said that the?calculus for smaller funds is different. AIP in Toronto manages assets of?approximately $100 million, with a significant portion concentrated in SpaceX. "I am piggybacking the biggest funds in the universe. Due diligence has been carried out in great detail. "I'm not going second-guess the world's biggest investors," he said. He admitted that it was difficult to get detailed financial information on SpaceX. "You only can get so much." Sometimes it's difficult to get numbers. STARLINK VERSUS STAR TELECOMS Starlink, or what SpaceX refers to as its "connectivity business", is compared with legacy telecom companies. However, some investors claim that these comparisons have been skewed due to aging infrastructure, saturated markets in the United States, and years of modest revenue growth. I wouldn't consider AT&T or Verizon to be very relevant for the Starlink economic model, even though both companies are in the business to provide communication, said a senior executive from one of SpaceX’s largest institutional investors, who spoke on the condition of anonymity because the work was confidential. Palantir is a better choice for SpaceX investors because of its high returns on capital invested, good margins, and asset-light structure. These qualities, say fans, justify the high multiples that the stock commands, and indicate greater opportunities in the future. Palantir, a well-known stock in the market that trades at 43 times revenue expectations and 75 times earnings, is known for being one of the most expensive stocks. Skeptics claim that these levels are unsustainable. However, SpaceX supporters say that they are achievable if backed up by exceptional financial performance. According to PitchBook, Palantir, with a market cap of $1.75 trillion would still be cheaper than SpaceX on these measures, as it would trade at 110x revenue estimates for 2025. "Investors should size positions with the understanding that they are paying a platform premium today for infrastructure-monopoly economics tomorrow," PitchBook analyst Franco Granda said in a note ?last month. ROCKET MANUFACTURING COMPARISONS SpaceX investors argue that for the rocket manufacturing part of the business, the firm's achievements - such as the fact it built a reusable system, drove down unit costs drastically and expanded into a market where the demand for launch capability continues to grow - demand valuations much higher than those at Lockheed. Lockheed traded recently for around 20 times the expected earnings for next year. Boeing's high multiples reflect the fact that it is a?turnaround story. They instead turn to industrial names like GE Vernova or Vertiv whose stock has soared due to AI data-center expenditure, arguing that SpaceX launch operations should be re-rated to "picks-and-shovels" in the data-center era. These preferred comps are not very similar to SpaceX. GE Vernova traded at around 30x expected cash flow, and four times revenue last year. Vertiv, a company that sells cooling and power equipment for data centres, was recently traded at 19 times the expected operating profit, and 6 times sales last year. MESSY PRICES AND RATIONALIZATION Investors and bankers say that SpaceX is difficult to price due to the unique nature of its space operations and AI businesses, which are difficult to value in an early stage. Aswath?Damodaran, finance professor and valuation expert at New York University Stern School of Business, said: "Pricing will always be messy." "Nobody has the capacity to launch satellites at such a low price and in such large numbers as they do. That's their biggest advantage." He says that the current price is a reflection of investors' justifications for purchasing the shares, rather than traditional metrics. They're hoping that there is enough momentum and mood behind SpaceX and, when it goes public in the future, this will drive the stock price up. "They have already decided that SpaceX will be a good buy," Damodaran stated. "Now they are looking for a way to justify this, and the pricing is that exposed rationalization."
Gold rebounds on benign United States work data ahead of Powell
Gold costs turned favorable on Wednesday after information revealed U.S. personal payrolls increased at a. moderate rate last month, ahead of remarks from Federal Reserve. Chair Jerome Powell later in the day and Friday's nonfarm. payrolls report.
Area gold was up 0.4% at $2,654.47 an ounce by 10:30. a.m. ET (1530 GMT). U.S. gold futures were up 0.4% at. $ 2,678.90.
Gold bounces as ADP dissatisfies, coming in just short of. consensus. Market was looking for a bigger bounce a month after. the typhoons and the Boeing strike, said Tai Wong, an. independent metals trader.
Personal payrolls increased by 146,000 last month, the ADP report. showed. Economists polled had actually forecast private. work increasing by 150,000 positions.
Gold is seeing a muted response today, with a stronger. impact anticipated from the approaching U.S. nonfarm payrolls and if. information indicate deteriorating work it would support prices,. stated Everett Millman, primary market analyst with Gainesville. Coins.
Looking ahead, markets are focused on Powell's remarks later. today, Friday's pivotal payroll report and next week's inflation. information for hints on the Fed's policy trajectory.
U.S. Central bankers on Tuesday signaled inflation is. gradually heading towards the 2% target, meaning capacity. rate of interest cuts.
St. Louis Fed President Alberto Musalem said on Wednesday he. expects the U.S. central bank will be able to cut interest rates. further however warned the speed of future actions has actually grown less. clear.
Traders are pricing in a 76% chance of a 25-basis-point cut. at the Fed's Dec. 17-18 conference.
Bullion, which does not pay any interest, traditionally. carries out well in low-interest rate environments.
Safe-haven gold was likewise supported by worldwide geopolitical. discontent, including South Korea's political turmoil, France's. federal government dealing with collapse, unrelenting Russian drone strikes in. Ukraine and Israel threatening war with Lebanon if its truce. with Hezbollah collapses.
Area silver increased 0.9% to $31.32 an ounce, platinum. lost 0.9% to $945.15 and palladium was up 0.8% at. $ 979.92.
(source: Reuters)