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Rusal, a Russian company, will buy a 50% stake in the Indian owner of an alumina refinery in phases.
Rusal, the Russian aluminium giant, announced on Friday that it has agreed to purchase a 26% share in an Indian alumina refining company for $243.75 millions and will acquire up to 50% over time. This move should help reduce Rusal's reliance on third party raw materials. Rusal is the largest aluminum producer in the world outside of China. Although the sanctions against Moscow for the conflict in Ukraine have not directly targeted Rusal, it has lost 40% of its alumina supply after Australia stopped exports to Russia, and Rusal closed its alumina refining plant in Ukraine. Rusal reduced its deficit by increasing its raw material purchases from China, India and Kazakhstan. In October 2023 it acquired a 30% share in a Chinese manufacturer to compensate for the falling volumes of alumina. Rusal still purchased more than one-third of its alumina requirements for aluminum production at global exchange rates as of November 2024. This, it said, "puts serious strain on the production margins". Rusal announced that it had agreed to buy up to 50% in three phases of the share capital of Pioneer Aluminium Industries Limited through a fully-owned subsidiary. Rusal announced that it would purchase 26% of Pioneer’s shares at a price of $243.75 millions plus any contractual adjustments for debt and net working capital. Rusal stated that "(Pioneer), owns and operates an alumina refinery in Andhra Pradesh (India) with a nameplate capacity of 1,5 million tonnes per year." Rusal announced that it and its vendors, the Pioneer group and KCap, will supply bauxite to Pioneer and receive alumina according to their respective shares. Rusal (listed in Hong Kong) reported on Friday a nearly three-fold increase in its annual profits, due to lower production costs as well as higher aluminium prices. (Reporting Anastasia Lyrchikova, Alexander Marrow and Elaine Hardcastle; Editing by Elaine Hardcastle).
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Democrats claim that Greenland needs to quickly form a broad coalition in order to show unity against Trump's pressure.
Greenland's parties need to put aside their differences and quickly form a large coalition government in order to demonstrate unity against a U.S. annexation campaign, said the Democrats on Friday following this week's elections. Jens-Frederik Nielson, leader of the business-friendly party that supports gradual independence from Denmark expressed the urgency of this situation in a post on Facebook following an initial round coalition discussions. This is not the moment for internal disputes and political tactics. He said that the situation in our country was far too grave for such tactics. "When someone threatens, looks down upon us, or speaks poorly of us, then we stand united." Donald Trump, the President of the United States, said on Thursday that the U.S. needs to control Greenland in order to improve international security. When asked about the possibility of an annexation, he replied: "I believe it will happen." Leaders of Greenland’s Inatsisartut Parliament met on Friday in order to discuss a response to Trump’s remarks. The Democrats, which more than tripled to 10 seats in the chamber of 31 members, have advocated responsible mining and development of Greenland’s economy, as well as its welfare, at a time when the semi-autonomous region is transitioning to full independence from Denmark. Naleraq, which is strongly pro-independence, came in second place at Tuesday's elections. It doubled its number of seats from four to eight. (Reporting and editing by Hugh Lawson; Louise Breusch Rasmussen, Jacob GronholtPedersen)
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Trump calls talks with Putin productive and urges him not to use Ukrainian troops
Donald Trump, the U.S. president, said that there was a "very high chance" of ending the conflict between Russia and Ukraine after Washington held "productive" talks with Russian President Vladimir Putin Thursday. He said that he asked Putin to spare the lives "completely surrounded", Ukrainian troops. This is a reference to the Ukrainian forces that were pushed out of the Kursk area, which was their sole foothold in Russian territory. Trump stated in a Truth Social posting that he had "very good and productive" discussions with Russian President Vladimir Putin yesterday. There is a good chance this terrible, bloody conflict can finally end. Karoline Leavitt, a White House spokesperson, told reporters later that Trump did not speak with Putin on the day in question but that U.S. ambassador Steve Witkoff spoke to him. Witkoff met with Putin for a long time in Moscow, according to an anonymous source who was briefed about the meeting. Dmitry Peskov, Kremlin spokesperson, said that Putin used the meeting as a way to send "signals" through Witkoff to Trump. He said that once Witkoff has briefed Trump, Russia and the U.S. will work out the time of a telephone call between their respective presidents. The U.S. President has stated that he wants Moscow to reach a quick ceasefire with Kyiv in order to stop the fighting. He has warned of the dangers of a war spiraling into World War Three, and he said it has already claimed many lives from both sides. Reporting by Trevor Hunnicutt and Katharine Jackson; Editing done by Chizu Nomiyama and Don Durfee.
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Gold reaches historic highs of $3,000/oz in historic safe haven rally
Gold broke the $3,000 barrier for the first-time on Friday as investors sought refuge from the economic uncertainty caused by US President Donald Trump’s tariff war. Gold spot rose by 0.1% at 9:42am ET (1342 GMT), after reaching a record high of $3004.86. U.S. Gold Futures rose 0.4% to $3.002.30. Tai Wong said that gold's rise past the $3000 mark was due to "beleaguered" investors who were looking for a safe haven given Trump's turmoil on the stock market. Bullion, traditionally viewed as an asset to store value in times of geopolitical unrest, has gained nearly 14% this year. This is due in part to concerns about the impact of Trump’s tariffs, and a decline in stock markets. Trump's protectionist policy has unsettled the global markets. U.S. stock prices have been experiencing a sell-off for a week, and S&P 500 is now in correction territory after losing $4 trillion. "Real Asset Money Managers, especially in the West, required a strong stock-market and an economic slowdown to return to Gold -- and this is happening now," Ole Hansen said, head of commodity strategies at Saxo Bank. The central bank demand for gold has also supported the price of gold, with China being a key buyer who increased its bullion reserve in February for the fourth consecutive month. David Russell, CEO of GoldCore, said, "Central banks continue to record high gold purchases, in order to diversify their portfolios away from the volatile U.S. Dollar." The expectation of monetary ease by the U.S. Federal Reserve has also boosted zero-yield. The Fed is expected keep rates the same next week. However, traders expect to see a return to rate cuts in June. Gold could still see a large correction "when trade issues are resolved and asset markets rebound." Wong said. Silver rose 0.3%, to $33.9 per ounce. Platinum gained 0.3%, to $997.00. Palladium was up 2.1%, to $978.18.
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Yemeni camel herders are at risk from landmines
The Marib Province in Yemen has a landmine warning sign that reminds camel-herders of their danger. Bedouins who have been displaced by war or forced to live in smaller areas hope to return to their nomadic lifestyle. Finding safe land for grazing is dangerous. Landmines are a problem in the south. Ogaim, a camel-herder, said that a landmine explodes every time one of the animals moves south. He said that nomads had moved north in order to avoid minefields and conflict zones. Yemen's Houthis, who are aligned with Iran, have been fighting a Saudi-led alliance against them since 2015. Since the Israel-Hamas conflict in Gaza began in 2023, a United Nations peace process is stalled. The United Nations warns that despite the fact that there have been no significant changes or escalation of violence in recent years, a new outbreak of violence is possible. Human Rights Watch reported in 2024 that landmines planted by warring parties continued to kill and injure civilians in areas where the fighting had ceased. Saleh al-Qadry, a herder from the Houthis war zone, said: "Landmines is our first problem near the Houthis." Mwatana, a local human rights organisation, has documented 537 landmine incidents between January 2016 and March 2024. Abed al-Thawr is an official in the Houthi Defense Ministry. He said that mercenaries had planted the mines, and the Houthis weren't responsible. According to the United Nations Development Programme, landmines and explosives remnants of war are a grave threat for millions of Yemenis. Herders in Marib in central Yemen say they have been forced to confine their camels and stay in tents because of landmines. "If we let them go, they might head to the landmines, step on them and cause them to explode," explained camel herder Saeed Oaig. (Written by Clauda Tanias; edited by Michael Georgy, Peter Graff and Peter Graff).
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Barclays lowers Brent oil forecast for 2025 on the basis of soft demand
Barclays lowered their 2025 Brent Oil price forecast on Friday by $9 per barrel. This was due to a weaker demand outlook in the face of increased economic uncertainty. Brent crude futures traded at around $70 per barrel on Friday after closing 1.5% lower the previous session. U.S. West Texas Intermediate Crude was around $67 per barrel. Barclays analysts said that they were "neutral" on oil prices compared to the curve. They also revised down their 2025 demand forecast to 510,000 barrels a day, due to low-frequency indicators being soft and economic uncertainty increasing. It said: "However we don't turn bearish in relation to the curve as inventories are still low and declining and risks for the supply outlook are also skewed towards the downside due to producers who are price sensitive pulling back, and geopolitical pressures." The International Energy Agency Warning: Thursday Global oil supply may exceed demand this year by 600,000 barrels a day due to the U.S.-led growth and lower-than-expected demand. Barclays has also sharply lowered its outlook for oil demand, now expecting a growth of 900,000. barrels per a day in the entire year. (Reporting from Brijesh Patel and Anmol Chaubey in Bengaluru, Editing by Paul Simao.)
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"Germany is back": Merz secures key support for debt deal
German Chancellor-in-waiting Friedrich Merz said on Friday he had secured the crucial backing of the Greens for a massive increase in state borrowing, clearing the way for the outgoing parliament to approve it next week. Merz's conservatives, and the Social Democrats who are currently in negotiations to form government following an election last week, proposed a 500-billion euro fund for infrastructure, and radical changes to borrowing regulations to boost defence and revitalize growth in Europe’s largest economy. The Greens have now given them the necessary two-thirds majority to pass constitutional changes. A vote is scheduled for the following week. Merz justified the need for the package to be passed by the incoming parliament, citing recent policy shifts in the United States. President Donald Trump has warned that an hostile Russia and a unreliable U.S. may leave the continent vulnerable. Merz's conservatives, who won the election, said at a press conference: "It sends a clear signal to our partners.. and also to the enemy of our freedom. We can defend ourselves." "Germany has returned." "Germany is contributing significantly to the defense of freedom and peace in Europe," added he. The news of the agreement lifted the yields on euro zone government bonds, the shares and the dollar as investors expected the borrowing plan to boost the European economy. The benchmark DAX index in Germany rose almost 2%. Both the mid-cap and small-cap indices also grew over 3%. The euro gained 0.5%, bringing its monthly gains to 5%. DEBT BRAKE IS 'BURIED Merz wants the funds secured before a new Parliament convenes, on March 25. Otherwise they run the risk of being blocked by a larger contingent of lawmakers from far right and far left. He said that the compromise reached with Greens included the allocation of 100 Billion Euros for the Climate and Economic Transformation Fund from the 500 Billion Euros earmarked for Infrastructure. The bill also contains a constitutional amendment that will exempt expenditures on defence, civil protection and disaster relief, intelligence services and information security from borrowing limits, referred to as the 'debt break', if they are greater than 1% of GDP. Reforms are aimed at rolling back debt rules that were imposed in 2008 after the global financial crisis, but have been criticised since then as being outdated and placing Germany in a fiscal straitjacket. Carsten Brzeski said, "With today's plans, the debt brake may not be dead, but more like buried alive," ING global head of macro. The only fiscal limit for the German government is the Stability and Growth Pact (EU). We know from experience that these rules are as flexible as butter when needed. (Reporting and writing by Andreas Rinke; reporting by Markus Wacket; writing by Sarah Marsh; editing by Toby Chopra).
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The embattled Congo President considers meeting with the M23 rebels
Felix Tshisekedi, the president of the Democratic Republic of Congo (DRC), has been denying dialogue to M23 rebels backed by Rwanda that are ravaging eastern parts of his nation. But a series of defeats as well as waning support in regional circles have made him reconsider. Angola, a neighboring country, surprised many this week when it announced that Congo and M23 will sit down for direct negotiations in its capital city on 18 March. This is at a moment when the rebels continue to seize territory rich with minerals like coltan and tantalum. Tshisekedi’s government has not publicly committed to sending a delegation, but this week three sources in the government said he was seriously considering it. Diplomats and analysts say that regional powers seem to agree on the need for dialogue, given the weak resistance of the Congolese army and its allies against the advance of the rebels. One senior diplomat stated: "I've never spoken to an African country who said Kinshasa should not talk to M23." Everyone says, "How can you stop fighting if you do not engage them?" A source told us on Friday that the government's participation in Luanda was certain, but it was too early to determine who would be representing Kinshasa. Some sources stated that the debate is still going on and a decision will not be likely made until the next week. M23, on its part, demanded that Tshisekedi give a clear commitment to engaging in dialogue. Both sides expressed concerns about the framework, and the way in which the Angola-hosted discussions would conform to regional decisions aimed at resolving the conflict. On Monday, the foreign and defence ministers of Southern and East Africa will meet in Harare to discuss efforts to end hostilities and promote political dialogue. 'FAILED' MILITARY APPROACH According to U.N. expert, M23 has thousands of Rwandan soldiers backing them. Their superior weapons and equipment have allowed them to take control of east Congo's largest cities as well as a number of smaller towns since late January. Rwanda denies that it provided arms and troops for M23 and claims its forces were acting in self-defense against the Congolese Army and militias hostile towards Kigali. It is unlikely that sitting down with M23 in Kinshasa would be popular, especially given Tshisekedi’s repeated promises to never do so. Bob Kabamba, a Congolese analyst at the University of Liege (Belgium), said that it would be an admission that Tshisekedi’s pursuit of a "military solution" has "failed". He said that "Kinshasa is stuck in its position, believing the rebel alliance must not cross a threshold of critical importance." Angola, Congo's neighbor, may have also made the same calculation. They were wary of getting sucked into a regional conflict of greater scale that would be similar to those which killed millions of people in 1990s and 2000s. "Angola clearly decided it was necessary to intervene in order to prevent the M23's advance towards the west of DRC," said Stephanie Wolters. She is a Congo analyst at South Africa's Institute for Security Studies. This week, the lack of confidence in Tshisekedi to change the military tide was seen in the approval by Southern African leaders of the "phased" withdrawal of a regional mission known as SAMIDRC which had the mandate to combat rebels. Wolters stated that although the deployment was not strong enough to make a difference in the fight against M23 but its presence was a sign of regional support towards Congo. Its departure was therefore deemed 'a significant blow'. (Additional reporting by Giulia Paraavicini; Writing and editing by Robbie Corey Boulet)
What Germany's planned expenditure spree might mean for the economy
German chancellor-in-waiting Friedrich Merz reached an agreement with the Greens on Friday on a massive increase in state borrowing, just days before a parliamentary vote on the issue, a source close to the negotiations said.
The parties aspiring to form the next government have agreed to create a special infrastructure fund of 500 billion euros ($545 billion), and to remove the debt restrictions on defence investments.
What the future plans for Europe's biggest economy could mean in terms of growth and debt:
Could the spending boost Germany's ailing economy?
According to economists yes, according to the economists
The German DIW Economic Institute said that the planned infrastructure fund could alone increase economic output by more than two percentage point per year in the next ten years.
DIW stated that a growth rate of 2,1% in 2026 is now expected instead of the previous 1.1%.
A second institute, IfW, also revised its growth estimate for Germany in 2026, predicting a 1.5% expansion on the backs of expected increases in public expenditure.
The IMK, an economic institute that has not updated its forecasts yet, predicts the German economy to grow by only 0.1% this year after two years of contractions in 2023-2024. However, the institute said new proposals might make a significant difference.
Sebastian Dullien, IMK’s director of economics, said: "If the financial package was implemented quickly, a noticeable acceleration in growth could be expected for the second half the year. Growth in the entire year may also move away from stagnation."
WHICH SECTORS ARE SET TO PROFIT MOST?
Construction can benefit from the fund set up to upgrade Germany's crumbling infrastructure.
The shares of Heidelberg Materials increased by 4% Friday. Bilfinger shares rose 4.8%, while Hochtief's were up 5%.
Also, the defence industry stands to benefit. The proposed coalition plans would amend the constitution to remove the strict limit on borrowing in Germany, known as the "debt brake", and allow for higher defence spending plans.
The news of this agreement has led to gains of between 5% and 7% for Rheinmetall, Hensoldt, Thyssenkrupp, and Renk, all German defence companies.
How much more debt will Germany take on?
Lots.
Germany's debt was 64% of its gross domestic product last year. This is lower than other industrialized countries like the United States or France.
Joerg Kraemer, chief economist at Commerzbank, expects this level to rise by 10 percentage points in the next few years due to the special fund created for infrastructure.
If defence spending was increased to 3.5% of GDP, the debt ratio would increase by 2.5 points per year.
Kraemer stated that the government debt ratio in 10 years could reach 90%. However, this is also dependent on inflation, and therefore, not easy to predict.
Friedrich Heinemann, a ZEW economist, said: "This would mean Germany would soon join the ranks the EU's most indebted countries." He predicted that Germany's debt could reach 100% in 2034.
WHAT WOULD THIS DO TO GERMANY'S TRIPLE A CREDIT RATING
Not necessarily. Eiko Sievert, a Scope analyst, said that the spending plans may increase Germany's level of debt to 72% of its gross domestic product in 2029. This is below the previous record of 80%, which was set after the global financial crash of 2010, when Germany maintained its AAA rating.
Sievert stated that the future of this possibility depends on the implementation and success of the necessary reforms in politics to boost competitiveness and economic development.
CAN GERMANY FIND SUFFICIENT LENDERS?
Germany is a popular borrower because of its top credit rating. To make German government bonds more attractive to investors, however, it would be necessary to increase interest rates.
Kraemer, Commerzbank's Kraemer, says that investors are likely to demand a higher risk premium for German government bonds.
Investors digested the news about the agreement regarding spending plans. This indicates that Germany's interest payments will likely increase.
Could Germany's Spending Spree Influence ECB Policy?
It is possible that pumping hundreds and billions of Euros into the economy will lead to inflation.
The ECB must take into consideration that inflationary pressures will increase again due to the planned expansionary fiscal policies in Germany, said Cyrus de la Rubia. Chief economist at Hamburg Commercial Bank. Reporting by Rene Wagner and Maria Martinez, Writing by Rachel More, Editing by Gareth Jones, Christina Fincher
(source: Reuters)