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China suspends Argentine chicken imports five months following lifting of ban
China has suspended the imports of Argentinean poultry products as of August 20, only five months after lifting a ban that lasted two years. The ban was imposed after the Argentinean government temporarily halted shipments due to a detection of avian influenza in a commercial poultry farm. The notice of suspension posted on the Chinese Customs website did not specify the reason or the length of time the suspension would last. The Customs authorities didn't immediately respond to an inquiry for comment. This week, Argentina's National Health Service (Senasa), confirmed a case in the province of Buenos Aires of Highly Pathogenic Avian Influenza (HPAI), resulting in a temporary halt to exports. Senasa announced that it would resume exports if there were no more outbreaks in commercial establishments after 28 days of cleaning, disinfection, and slaughter. China imports mainly poultry products, such as chicken legs, chicken wings and chicken boneless pieces. This decision could help to support prices for some poultry products, as China has limited imports from major suppliers. Pan Chenjun is a senior animal proteins analyst at Rabobank Hong Kong. The overall impact of the price increase is limited, however, due to China's surplus poultry meat and its ongoing financial difficulties. Customs data show that China's imports of poultry meat from January to July totaled 226,013 tons, down by 2% when compared with the same period in 2017. Beijing has also banned imports of poultry and other products from Brazil since May, and from Spain in this month. Authorities have noted bird flu outbreaks both countries. Reporting by Ella Cao and Lewis Jackson in Beijing; Additional reporting from Maximilian Heath, Buenos Aires. Writing by Paolo Laudani. Editing by Edwina gibbs, Alexander Villegas, and Ros Russell.
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Oil and the dollar are advancing, while global equities are declining
Gold prices and global equities fell on Thursday as traders avoided big moves, and awaited the three-day annual Jackson Hole Symposium of the Federal Reserve. The symposium begins on Thursday, and traders will focus on Fed Chairman Jerome Powell's Friday speech as they look for clues about the possibility of a rate cut in September. The U.S. Treasury rates increased as the meeting began. Oil futures rose, supported by strong demand from the United States and uncertainty about efforts to end war in Ukraine. The U.S. Dollar also gained, gaining 0.35% compared to a basket other currencies. Stocks in Asia remained near their recent highs, while Australia's benchmark reached a record. The MSCI World Equity Index fell 0.21%, but European and U.S. stock markets were also under pressure. People are sitting around. "You have two big unknowns in the near future, Jackson Hole tomorrow, and the Fed on September," said Tim Graf. He is head of macro strategy at State Street Markets for EMEA. He said: "This is the right time to let people know that you are going to relax, and it will be coming." "But I also see them saying that we don't yet know the full impact of tariffs, and inflation pressure has not been completely removed from the economy." Wall Street saw the S&P 500 fall 0.17%. The Dow Jones Industrial Average dropped 0.24%. And the Nasdaq Composite fell 0.07%. The traders had increased their bets on a September reduction after a surprising weak payrolls report earlier this month. They were also encouraged by consumer price data, which showed that tariffs did not exert much upward pressure. They did, however, lower their expectations after the minutes of the Fed's meeting in July were released. According to LSEG, the markets had priced in a 79.6% probability of a rate cut for September, compared with 83% on Wednesday. The STOXX 600 pan-European index fell 0.04%. Analysts attribute a drop in tech stocks to fears that AI investments are not producing returns. The PMI data shows that euro zone business activity increased in August. Germany registered its highest growth since March, and France's decline eased. The benchmark German Bund 10-year bond rose 2.5 basis points to 2.751%. The yield on the 10-year U.S. Treasury rose by 3.7 basis points, to 4.334%. The euro fell 0.32% to $1.1614. Donald Trump intensified on Wednesday his efforts to influence the Fed, urging Governor Lisa Cook resign based on allegations made by a political ally of his about mortgages that she holds in Michigan or Georgia. Cook stated that she "had no intention" of being bullied into stepping down from her role at the central banking. In a research note, analysts at Deutsche Bank attributed the rise in gold over night to renewed concerns regarding the Fed's autonomy. The news reminded the market of the concerns about future Fed independence, and the risks of fiscal dominance. However, the reaction of the markets was relatively modest. Tim Graf, State Street Markets, said that while central bank independence is considered "sacrosanct by markets", it is not yet problematic. He said: "Markets look at this quite correctly, and there is a risk premium in the price, but I don't think it upsets things too much." Gold futures rose 0.01%, but spot gold prices fell 0.09% to $3,343.69 an ounce. Brent oil futures gained 0.49% per barrel to $67.17 and U.S. crude added 0.48% to $60.01.
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Sources say that Berlin is considering extending the trusteeship for Rosneft German assets.
Two people with knowledge of the situation said that Berlin was considering extending its trusteeship for the sixth time over the German assets owned by Russian oil producer Rosneft, as the efforts to sell this business continue. The renewed trusteeships put pressure on Berlin to create a more suitable legal structure for Rosneft’s activities in Germany. This situation is emblematic for the challenges Berlin faces when dealing with Russian assets located in Germany, at a moment when efforts are intensifying to end the conflict in Ukraine. In September 2022, the German assets of Rosneft, including the Schwedt refinery, MiRo refinery, and Bayernoil refining plant, were placed under government trusteeship. This was in response to Russia's invasion of Ukraine. The Russian invasion triggered an energy crisis in Europe due to the breakdown of its relations with Russia, a key supplier. Berlin has so far avoided nationalising Rosneft, choosing instead to retain de facto control of them through a trusteeship, which still leaves the legal ownership in Russians' hands. The German regulator of networks, the Bundesnetzagentur is implementing the trusteeship on behalf the Economy Ministry. It must be renewed every 6 months. Sources said that a formal decision regarding the extension of trusteeship is yet to be made. Rosneft is Russia's largest oil producer. It has tried to sell off its German businesses. This includes a 54,17 percent stake in PCK Schwedt. However, talks with potential buyers, such as Qatar, have been unsuccessful. First source: Rosneft is in talks with Qatar. Rosneft owns 24% of the MiRo refineries and 28.57% of the Bayernoil refineries. Berlin is examining different options for the German assets of the group, according to Berlin's economy ministry. A spokesperson for the Ministry said that "ensuring security of supply is the primary goal". Berlin, he added, was not involved in the sales negotiations so could not give any information. Requests for comments from the Qatar Investment Authority or Rosneft were not answered. Gazprom Germany, now known as Sefe, has been nationalised by Berlin since 2022, after its former Russian parent abandoned the division. This is an important part of Germany's supply of gas. "The federal government has its own strategy." Expropriating businesses would be against the conservative Christian Democrats' campaigns. "It would be a big step, with a high threshold," said the first source. (Reporting from Riham Alkousaa, Christoph Steitz. Vladimir Soldatkin contributed additional reporting. Ludwig Burger, Mark Potter and Ludwig Burger edited the article.
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Ethos reports that the average CEO salary at Swiss blue-chip companies will rise to $10 million in 2024.
The average CEO salary at Swiss blue-chip firms will rise 7.4% annually to $8.3 million Swiss Francs ($10m) by 2024, according to proxy advisory firm Ethos. This is still below the U.S., UK and continental Europe levels, but remains among the highest in Europe. In a study on CEO compensation, the median CEO earnings in the United States were $24 million and in Britain they were 7.3 million. The Swiss CEOs earned 7.1 million. Ethos reported that the increase in the average CEO salary at the 20 largest Swiss companies was largely driven by the Partners Group. Growth at Partners Group has been accelerating for the past two year, Ethos stated. The study revealed that Flemming Ernskov, CEO at skin care company Galderma, topped the list with 19 million Swiss francs. He was followed by UBS CEO Sergio Ermotti, his counterparts David Layton and Vasant Narasimhan at Novartis. Ethos calculated that Jan Jenisch's former CEO at Holcim cement company, Holcim, would have earned 45,8 million Swiss Francs by 2024 due to the differences between his awarded and realized remuneration. Since years, the salaries of company executives have been a controversial issue in Switzerland. In 2013, voters backed a binding vote for shareholders on executive pay. This year, a parliamentary panel is drafting strategies for reining in bankers' compensation. ($1 = 0.8068 Swiss francs)
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Wall Street stocks drop as traders focus on Fed
Wall Street also opened lower on Thursday as traders avoided big moves in anticipation of the three-day Jackson Hole Symposium, which is being held by the Federal Reserve. Jackson Hole begins on Thursday, and traders will be watching for clues about a possible September rate cut. Stocks held near their recent highs in Asian trading and Australia's benchmark reached a new record. The European session was a struggle for the markets to gain ground. People are slouching. "You have two big unknowns in the near future, Jackson Hole tomorrow, and the Fed on September," said Tim Graf. He is head of macro strategy at State Street Markets for EMEA. He said: "This is the right time to let people know that you are going to relax, and it will be coming." "But I also see them saying that we don't yet know the full impact of tariffs, and inflation pressure hasn't quite left the economy. Being a bit less balanced." The traders had increased their bets on a September reduction after a surprising weak payroll report at the beginning of this month. They were also encouraged by consumer price data which showed that tariffs have only limited impact. They lowered their expectations after the minutes of the Fed's meeting in July were released. According to LSEG, the markets had priced in a 79.6% probability of a rate cut for September, compared with 83% on Wednesday. At 1355 GMT the S&P 500 had fallen 0.4% for the day, its fourth consecutive loss day. The Dow Jones Industrial Average fell 0.5%, and the Nasdaq 100 dropped 0.4%. The pan-European STOXX 600 fell by 0.1% for the day. The MSCI World Equity Index fell 0.2% in value on the day. Analysts attribute a Pullback in Tech Stocks This week, concerns were raised that AI investments did not deliver returns. The PMI data revealed that the Eurozone business activity increased in August. Germany registered its highest growth since March, and France's recession eased. The benchmark German Bund yield was 2.7527%. The yield on the 10-year U.S. Treasury was 4.3277%. The U.S. Dollar Index was up 0.3% for the day, at 98.48. The euro was down by 0.2% to $1.1622. Donald Trump, the U.S. president, intensified his efforts to influence the Federal Reserve by calling for Federal Reserve Governor Lisa Cook's resignation on Wednesday. He did this on the basis allegations made about mortgages Cook holds in Michigan or Georgia by one of Trump's political allies. Cook stated that she "had no intention" of being pushed to resign from her role at the Federal Reserve. In a research note, analysts at Deutsche Bank attributed the rise in gold over night to renewed concerns regarding the Fed's autonomy. The news reminded the market of lingering concerns about future Fed independence, and the risks of fiscal dominance. However, the reaction of the markets was relatively modest," Deutsche Bank stated. Tim Graf, State Street Markets, said that while central bank independence was considered "sacrosanct by the markets", it wasn't yet problematic. He said: "Markets look at this quite correctly, and the price may have a bit of a risk premium, but I don't think it upsets things too much." Gold prices fell slightly on Thursday to $3,340.65 an ounce. Prices of oil rose on signs of a strong U.S. market.
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Gold prices hold steady as Jackson Hole investors swarm in
The gold price was stable on Thursday, as investors awaited Federal Reserve chair Jerome Powell's address at the Jackson Hole Symposium on Friday to get hints about the direction of the central bank. As of 9:43 am, spot gold was down marginally, at $3,344.66 an ounce. ET (1343 GMT). The December U.S. Gold Futures contract remained unchanged at $3,388,70. Gold priced in U.S. dollars is now more expensive for foreign buyers due to the 0.2% increase in the U.S. Dollar index. Powell will speak about the economy and the Fed policy stance at the Jackson Hole Conference. Edward Meir, Marex analyst, said: "I don't expect much to happen if (Powell), signals a rate reduction in September because the market has already expected that." Meir continued, "If he said we might decrease rates again in November, December or October, I believe the dollar would weaken, and gold could rise." Gold that does not yield is usually more profitable in an environment with low interest rates. According to CME's FedWatch, traders expect a quarter point cut in September. Minutes of the Fed's meeting in July showed that Governor Christopher Waller and Vice Chair for supervision Michelle Bowman were the only officials who pushed for a cut in rates, while disagreeing with the decision to keep rates the same. Last week, the number of Americans claiming unemployment benefits increased by nearly 3 months. The BMI research firm, a subsidiary of Fitch Solutions, revised up its gold price forecast for 2025 by $150, to $3,250 an ounce. Prices will remain high in the weeks to come as the market prepares for a rate cut by the U.S. Fed in September. We believe that the gold price will only be limited by the rate reduction, as most of the gains are already priced in. Silver spot was up 0.4% to $38.05 an ounce. Platinum fell 0.1% to 1,338.75, and palladium dropped 1.3% to $1,000.06. (Reporting and editing by Helen Popper in Bengaluru)
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Vattenfall, Sweden shortlists Rolls Royce and GE Vernova for SMR nuclear reactors
Vattenfall, the Swedish state utility, announced on Thursday that it had selected Rolls-Royce SMR from Britain and GE Vernova of the United States as candidates for its planned construction of a small modular reactor (SMR). The Swedish parliament passed legislation in May to finance a generation of new nuclear reactors. According to the government, these are essential to achieve energy security and net zero emissions before 2045. Vattenfall will order five BWRX-300 nuclear reactors from GE Vernova, or three Rolls-Royce SMRs. These reactors will have a combined output of 1,500 MW. This will be the first new nuclear reactors Sweden has had in over 40 years, Vattenfall said in a press release. Nuclear power, once thought to be doomed after the nuclear accidents in Chernobyl (Ukraine) and Fukushima (Japan), has experienced a resurgence in recent years. This is due to countries' efforts in phasing out fossil fuels in order address climate change and phase out coal. Sweden wants to build a minimum of 2,500 MW nuclear capacity by the year 2035. The government wants to build the equivalent of 10 full-size reactors in total by 2045. Ulf Kristersson, Swedish Prime Minister, said on X: "Now it is happening - Sweden will have a more competitive, stable and climate friendly energy production with the new nuclear power." It's good for both Swedish families and industrial economy. The government estimates that Sweden's electricity demand will double in the next 20 years to 300 terrawatt-hours, largely due to the growth of new industries, such as green steel, biofuels, and large-scale production of hydrogen. The government claims that these industries will move elsewhere if there is no new energy capacity, such as nuclear power. The industry has been reluctant to invest, and now the government will shoulder the majority of the nuclear financing.
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Lavrov: Russia is interested to work with India on joint energy projects
Sergei Lavrov, the Russian foreign minister, told his Indian counterpart at a meeting in Moscow on Thursday that Russia and India had achieved good results with their energy cooperation. Moscow is also interested in working together on joint energy projects. Since U.S. president Donald Trump raised tariffs on Indian imports earlier this month due to its purchase of Russian oil, Moscow and New Delhi have talked about their "strategic partnerships". "We are seeing good results from our cooperation in the hydrocarbons sector. We supply Russian oil to India. We have a shared interest in developing joint projects to extract energy resources in Russia, in the Far East as well as on the Arctic shelf", Lavrov stated. He spoke at a Moscow joint press conference with Indian Foreign minister Subrahmanyam Jishankar. After the West imposed sanctions against Moscow for its conflict in Ukraine, Russia was able divert its oil exports, which are a major source of revenue to the state, away from Europe, and mostly to China and India. India and China are two of the largest buyers of Russian oil. On Wednesday, officials from the Russian Embassy in New Delhi stated that Russia Expected to continue providing oil Moscow hopes trilateral talks between India and China will soon be held despite the pressure of the United States. Dmitry Antonov, Lucy Papachristou and Andrew Osborn edited the article.
Sources: ADB will provide $410 Million package to Barrick's Pakistan mine
Two sources confirmed on Thursday that the Asian Development Bank would provide $410 million to Barrick Gold for its Reko Diq Copper Mine in Pakistan, which is one of the largest untapped deposits in history.
Islamabad hopes that the project will be a springboard for attracting more foreign interest in its mineral sector. Pakistan has already drawn interest from the Trump Administration and offered future concessions for U.S. firms.
The loan and financing guarantee will be used to support the development of Reko Diq. It is anticipated that Reko Diq will produce copper and gold by 2028, and it should generate approximately $70 billion over its lifetime in free cash flow.
Both sources confirmed that the financing consisted of two loans to Barrick totaling $300 million and a financing guarantee of $110 million for the Government of Pakistan.
Barrick owns 50% of the $6.6 billion Balochistan project, while the remaining half is owned by the federal government and the provincial governments.
ADB, Barrick and the Petroleum Ministry did not respond immediately to comments.
The project is aiming to raise up to $2 billion. It has an agreement with the International Finance Corporation (the private investment arm of the World Bank) for $700 millions in financing.
Tim Cribb, the project's director, told us in April that they were in discussions with other potential financiers including Export Development Canada, U.S. Export-Import Bank and Japan's JBIC. They expect to sign terms sheets in this quarter.
Reko Diq was delayed by years due to a legal dispute which was finally settled in 2022. It will initially produce 200,000 tons of copper per year, but this figure will rise to 400,000 after expansion.
Barrick claims that the mine can operate for an additional 37 years through exploration and upgrades. Reporting by Saeed Shahid and Ariba Shehid in Islamabad. Editing by Jane Merriman, Joe Bavier.
(source: Reuters)