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Berkeley Energia, a subsidiary of Australia's Berkeley Energy, claims that Spain owes it $1.25 billion over uranium disputes
Berkeley Energia, an Australian company, said that it had filed a memorial for a claim of?about $1.25bn against Spain before the World Bank's arbitration tribunal. This was up from a prior request. It is related to the Salamanca uranium blockade project. The mining group stated that its unit, Berkeley Exploration filed the claim at the International Centre for Settlement of Investment Disputes. It included background information on the project and the dispute as well as key witness statements. The company filed an arbitration request in May 2024, seeking $1 billion from the Spanish government for refusing to grant approval of its uranium mining project. The project near Salamanca received preliminary approval in 2013 but the Spanish Energy Ministry denied final approval again in 2021. Berkeley accused the government of violating its rights in 2024 under the Energy Charter Treaty. This international agreement was designed to promote energy safety through a more open and competitive market. The company said in a Friday statement that Spain has until 2026 to reply to the?memorial of claim. As of 0030 GMT, shares of the company had fallen as much as 8.8% to A$0.52, along with the mining sub-index which fell 2.8%. Sherin Sunny, Bengaluru. Vijay Kishore, Rashmi aich and Vijay Kishore edited the article.
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Silver hammered as AI crisis deepens
Asian stocks continued to fall in early trading on Friday, as the selloff on Wall Street intensified. Precious?metals like gold and cryptocurrency were gripped by a ferocious volatility. MSCI's broadest Asia-Pacific index outside Japan dropped 0.9%. This was led by a 5% plunge in South Korea's Kospi, which caused a short trading halt shortly after the opening. Japan's Nikkei fell 0.7% while S&P 500 emini futures dropped 0.6% and Nasdaq E-mini Futures plunged 1.1%. "Investors have begun to 'question their commitment to the pillars which have supported markets for the past six months, namely AI, crypto and precious metals," said a market analyst at IG, Sydney, Tony Sycamore. This increases the chances of a more significant unwind. Stocks fell overnight amid fears that AI models could start eating into software firm profits. The S&P 500 turned negative for the entire year, as concerns about the labour market increased. A survey by global outplacement firm Challenger Gray & Christmas on Thursday showed that the number of layoffs announced 'by U.S. companies in January rose to its highest level in 17 years. Gold fell 1.6% to $4691.76, while silver plunged another 8.9% to $64.912. The cryptocurrency markets continued to lose money after a massive $2 trillion loss on Thursday. Bitcoin fell 3% to $61,238.64, and ether was down 1.8%, at $1,813.77. (Reporting and editing by Shri Navaratnam.)
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Mexico is looking for a way to send fuel without US tariffs to Cuba, according to sources
Sources familiar with the situation said that Mexican officials are looking at ways to ship fuel to Cuba in order to meet the island's "basic needs" such as transportation and electricity, without provoking Washington. Washington has threatened to impose tariffs on countries that supply fuel to Cuba. Sources said that high-level Mexican officials had been in contact with their counterparts in the United States to clarify the extent of the tariff threat described by President Donald Trump through an executive order, and to see if there was a possible way to get the fuel they desperately needed. Mexico's ability to find a solution is still uncertain. The White House has referred to Trump's previous remarks, in which he said that Mexico would cease sending oil to Cuba on Monday, without explaining why he believed this. Requests for comment from the U.S. State Department or Mexican presidency were not immediately responded to. Mexico's Foreign Ministry stated that it had no information about the incident. Cuba imports fuel to meet two-thirds its energy requirements, but is also struggling with power outages that are getting worse and long queues at gas stations. After the U.S. blocked Venezuelan tankers and President Nicolas Maduro was captured in January, the shipments of Venezuelan oil to Cuba ceased. Mexico is now Cuba's biggest supplier. In mid-January however, the Mexican government stopped shipments of crude oil and refined products due to pressure from the Trump Administration. Washington then threatened to impose tariffs on oil-supplying countries to Cuba, claiming that the island poses an "extraordinary" threat to U.S. security. Havana denied this claim. One of the sources who asked to remain anonymous in order to discuss private issues said, "There are almost daily talks." Mexico does not want tariffs to be imposed but is firm in its policy to help the Cuban people, the source said. Cuban officials announced on Thursday that they were preparing an emergency plan to deal with "acute fuel shortages". They would reveal the details in the coming week. This week, U.N. Sec-Gen?Antonio Guterres said that Cuba faces a "collapse" if oil is not provided to meet its requirements. Mexico and the ruling?Morena Party have maintained long-standing ideological and historical ties to Cuba. President Claudia Sheinbaum faces pressure within her coalition not to abandon Havana. Three of the four sources said that talks were progressing, and they were optimistic about a possible solution. Two of the four sources claimed that Mexico could send a tanker containing gasoline, food, and other supplies to the island within days, if a deal is reached. Sheinbaum stated last Friday that imposing tariffs on oil-supplying countries could lead to a humanitarian crisis that would affect hospitals, food and other basic services in Cuba. This situation must be avoided by respecting international law and dialog. (Reporting and editing by Stephen Eisenhammer, Nia Williams and Adriana Barrera in Mexico City; Additional reporting and editing by Ana Isabel Martinez and Adriana Barera in Mexico City; Marianna Pararaga in Houston)
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Oil prices continue to fall ahead of US-Iran negotiations
U.S. Crude Futures continued to decline on Friday. They are on track for their first weekly loss in weeks as investors focused on the outcome later that day of the U.S. and Iran nuclear talks in Oman. U.S. West Texas Intermediate Crude was $62.47 per barrel at 0013 GMT. This is down 82 cents, or 1.3% after the price closed 2.84% lower Thursday. The U.S. has agreed to hold talks with Iran in Oman this Friday, amid increased tensions in the Middle East as the U.S. is building up its forces and regional players are trying to avoid a possible military confrontation. Around a fifth of all oil consumed in the world passes through the Strait of Hormuz, which connects Oman with?Iran. Saudi Arabia, Kuwait, Iraq, United Arab Emirates and other OPEC countries export the majority of their crude oil via the strait. Capital Economics analysts stated in a note that "escalating 'geopolitical tensions' between the U.S. "But we believe that geopolitical concerns will give way to weak fundamentals," said the experts, pointing out a rebound in Kazakhstan's output which will push oil prices down to $50 per barrel by 2026. (Reporting and editing by Chris Reese; Florence Tan, Reporting)
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Capstone Copper resumes full production at Chile’s Mantoverde Mine as strike ends
Canada's Capstone Copper announced on Friday that its largest union at the Mantoverde copper and gold mine in?Chile approved a three-year contract. This ended a strike which began on January 2, and allowed production to resume normal. The Australian-listed shares of the miner fell by?3.9%, to A$15.430. This is their lowest level since January 23. The agreement brings an end to the labour strike which had reduced production in the?mine by about 55%. Capstone announced that it had?now negotiated new contracts for all four unions on the site. This allows the company to resume its full operations. Union No. Union No. 2, which represents around 645 workers, or about 50% of Mantoverde’s direct workforce led the strike. They had rejected a payment after 'labour negotiations failed. The company didn't disclose any details about the new payment offer, or the terms of the contract. Mantoverde will produce 62,308 tons of copper concentrate in '2025 and 32,807 tonnes of copper cathodes. This is about 0.4% global production. Capstone holds 70% of Mantoverde while Japan's Mitsubishi Materials owns the remaining 30%. (Reporting by Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu)
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India exports its first fuel to Europe after the ban on Russian crude oil-derived products
Reliance Industries partially unloaded a jet fuel cargo in Italy. This was India's first export since the European Union banned products made from Russian oil on January 21. India is a major buyer of Russian crude oil, and the market closely monitors its refined oil exports into Europe to look for signs of any trade disruptions which could cause prices to rise. The EU ban on the import of products made from?Russian oil is intended to curb oil revenues that Moscow uses to finance its war in Ukraine. Reliance has two refineries in its Jamnagar complex - one is geared towards exports, and the other for the domestic market. On November 20, it announced that it had stopped processing Russian crude in its export-oriented facility. Aframax Liwa V, chartered by Reliance and offloaded around 390,000 barrels or half of its cargo at the Fiumicino Port near Rome between February 1 and 4, according to ship tracking data from Kpler, Vortexa, and a source in the trade. Data showed that the Liwa-V arrived in Italy around 8 January and waited for three weeks outside the port. The cargo was initially scheduled to be unloaded by January 24 according to two different trade sources. The discharge was delayed because of bad weather. The ship had already discharged a substantial amount and is now waiting outside the port for the cargo to be completely offloaded," stated a spokesperson from Reliance Industries. RELIANCE SEGREGATES RUSSIA FREE FUEL FOR EUROPEAN MARK India is able to benefit from the discounted Russian crude oil as Western nations have sought to reduce their dependency on Russian energy due to the conflict in Ukraine. Kpler data shows that India imported nearly 15% of Europe’s aviation fuel from 2022-2025. This is nearly three times more than the amount it exported in 2021, before the outbreak the war. Reliance has told European buyers and traders it has written statements that Russian crude oil has not been used in the production of fuels exported to Europe. Sparta Commodities analyst James Noel Beswick stated that "Reliance maintains segregation is possible of diesel streams. One would expect to see the company explore workarounds like FOB (free on board) sales or blend operations, should European buyers remain cautious." Shipping data from Kpler and two sources of trade showed that only one Indian jet fuel shipment per month is headed to Europe on the tanker Karpathos. Since the ban began, Europe has not received any diesel imports.
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WEC Energy increases spending by $1 Billion as Microsoft data centres expand in Wisconsin
WEC Energy Group Inc, a Wisconsin-based U.S. utility company, announced on Thursday it would increase its capital expenditure by $1 billion in the next five year as it increases output to power Microsoft's data centers. Big Tech is ?racing ?to build energy-intensive data centers to support artificial-intelligence initiatives, pushing electricity demand to record highs and prompting deals with U.S. power companies. Wisconsin, other Mid-Atlantic and Southern U.S. states and the Midwest are currently seeing most of the new requests for data center power. Microsoft, which purchased 2,000 acres in 'WEC territory for data centers, was approved by regulators to expand Mount Pleasant, Wisconsin campus, by 15 buildings, last week. WEC CEO Scott Lauber told investors that the first phase is expected to be online by the end of this year. The new plan will increase demand forecasts by 500 Megawatts. Microsoft's Wisconsin expansion of data centers brings WEC demand forecast for the area to 2.6 gigawatts in 2030. One gigawatt is enough power to run 750,000 homes. Vantage Data Centers, a developer who has signed on to build data centres for Oracle and OpenAI in 1,900 acres of land, is also driving energy consumption. WEC has said that it will begin supplying electricity to the site by the end of next year. Lauber stated that the demand for electricity at the site will be estimated at 1.3 gigawatts over the next five-year period, with a potential of 3.5 gigawatts. WEC Energy Group Inc. reported a fourth quarter profit that exceeded Wall Street expectations,? driven by data center demand and an increase in residential and commercial sale. Milwaukee-based company serves 4.7 million customers in Wisconsin, Illinois Michigan and Minnesota. Residential electricity usage increased 3.5% over the past year. Total retail deliveries also increased by 2.2%. The quarter included a 45 cents per share charge related to proceedings relating to?infrastructure costs-recovery riders' in Illinois. According to LSEG, WEC reported adjusted quarterly earnings of 1.42 dollars per share during the three-month period ended December 31. This compares with an average analyst estimate of $1.40, based on data compiled. Reporting by Laila K. Kearney, New York; editing by Tasim Z. Zahid and Cynthia Osterman
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Mexico is looking for a way to send fuel without US tariffs to Cuba, according to sources
Sources familiar with the situation said that Mexican officials are looking at ways to ship fuel to Cuba in order to meet basic needs, such as electricity and transportation, without provoking Washington's retaliation. Washington has threatened to impose tariffs on countries supplying fuel to the Caribbean Island. Sources said that high-level Mexican officials had been in contact with their counterparts in the United States to clarify the extent of the tariff threat described by President Donald Trump through an executive order, and to see if there was a possible way to get the fuel they desperately needed. Mexico's ability to find a solution is still uncertain. Requests for comment from the?White House, U.S. State Department, and the Mexican Presidency were not immediately responded to. Mexico's Foreign Ministry stated that it had no information about the matter. Cuba imports fuel to meet two-thirds its energy requirements, but is also struggling with power outages and long gas lines. After the U.S. blocked Venezuelan tankers and President Nicolás Maduro was captured in early January, the oil shipments to Cuba ceased. Mexico is now Cuba's biggest supplier. Mid-January, however, the Mexican government stopped shipments of "crude and refined" products due to pressure from the Trump administration. Washington then threatened to impose tariffs on oil-supplying countries to Cuba, claiming that the island poses an "extraordinary" threat to U.S. security. Havana denied this claim. One of the sources who asked to remain anonymous in order to discuss private issues said, "There are almost daily talks." Mexico does not want tariffs to be imposed but is firm in its policy towards the Cuban people," said the source. Cuban officials announced?on Friday that they are preparing a "plan for acute fuel shortages", and will release the details in the coming week. The U.N. Secretary General Antonio Guterres warned this week that Cuba faces a "humanitarian collapse" if they do not receive enough oil to meet their needs. Mexico, in particular, the Morena Party, which is currently ruling, has maintained long-standing ideological and historical links with Cuba. President Claudia Sheinbaum, however, faces pressure within her coalition not to abandon Havana. Three of the sources stated that talks were progressing, and they were hopeful?a solution would be found. Two sources claim that Mexico could send a tanker of gasoline, food, and other supplies to the island within days, if an accord is reached. Sheinbaum stated last Friday that "imposing tariffs on countries that supply oil?to Cuba could trigger an extensive humanitarian crisis that would directly affect hospitals, food and other basic services to the Cuban population. This situation must be avoided by respecting international law and dialog." (Reporting and editing by Stephen Eisenhammer, Nia Williams and Adriana Barrera in Mexico City; Additional reporting and editing by Ana Isabel Martinez and Adriana Barera in Mexico City; Marianna Pararaga in Houston)
Take Five: Trump's tariffs are big
Financial markets were influenced by the U.S. President Donald Trump’s weekend announcement of sweeping tariffs against Mexico, Canada, and China, the impending U.S. employment data, and the assessment of the AI landscape in advance of major tech companies' quarterly results.
European lenders will also release their results.
Kevin Buckland, Saqib Ahmad, Lewis Krauskopf, and Amanda Cooper, in London, provide a guide to global markets for the coming week.
1/T DAY
Everyone is looking at the possible fallout from Trump's tariffs, including bond investors, currency traders, Fed officials and other foreign powers.
Trump imposed tariffs of 25% on Mexican imports, and 10% on Chinese goods starting Tuesday.
Canada announced that it would impose 25% tariffs on $155 billion worth of U.S. products. Mexico has said that it will also retaliate with tariffs, and China has promised countermeasures.
As China returns from Lunar New Year celebrations this week, the markets will focus on its response.
In Europe, investors have re-evaluated their view that increased trade tensions can be avoided.
Should I stay or should I go?
Investors are assessing the prospect of further interest rate reductions and the potential impact that new Trump Administration policies may have on the labour market. The U.S. monthly jobs report is due out on February 7.
The blowout December jobs report raised questions about the Fed's ability to further ease monetary policies and sent Treasury yields soaring. Inflation data that were encouraging did calm the market, but a strong January jobs report may change everything.
Fed Chair Jerome Powell stated that he is not in a hurry to cut rates until inflation and employment data makes it appropriate.
Trump's agenda on the labour market is a big unknown. It includes a crackdown on immigration and plans to reduce the federal workforce. The White House offers 2 million federal workers financial incentives to leave.
3 TECH-TONIC SHIFTs
Investors have speculated for years about what could slow down the AI investment steamroller. Now, they have a fresh perspective: the emergence of China's AI sensation DeepSeek. It has rewritten assumptions about computing power and the amount of money needed to develop state-of-the art models.
This change shattered Nvidia stock's value, causing it to plummet. DeepSeek also challenges the dominance of U.S. tech, and raises questions about the competitive advantage of the seven top tech stocks, known as the Magnificent Seven.
Investors will be able to decide whether the recent AI market volatility represents a warning for future challenges, or if it is an opportunity to reinvest.
4/Squeeze for a Squeeze
This week, European banks are reporting their fourth-quarter earnings, including BNP Paribas in France, Societe Generale and Credit Agricole in Switzerland, and Santander Spain.
The majority of lenders will have wrung out enough extra cash from higher interest rates, helped by soaring revenues in investment banking. This will boost their profits to keep the two-year rally going. Investors are looking for signs that the recent surge in deal-making is not over.
However, there are still challenges. The falling interest rates put pressure on the banks' earnings on loans and their deposits. Meanwhile, the U.S. economic growth is accelerating.
Deutsche Bank, a German bank, has caused concern after it reported a steep drop in profit and abandoned a major goal regarding costs. This sent its shares down.
5/DECISION TIMES
On Thursday, the Bank of England will meet to set interest rate. The markets haven't fully priced in a quarter point cut but economists appear to believe that this is likely.
UK data are weakening. Multiple measures of employment indicate cracks in the labour markets, and unexpectedly consumer spending fell during the crucial holiday shopping season. The BoE predicts that growth will remain flat in the fourth quarter of 2024.
Many banks believe that the British economy will struggle to grow by even 1% in this year, despite plans from Finance Minister Rachel Reeves to revive growth.
The bond market turmoil that occurred earlier this month pushed government borrowing costs for 10-year bonds to their highest level since 2008. Gilt yields are down, but still uncomfortably high at 4.5%. This is more than any other G10 country except New Zealand.
(source: Reuters)