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India's rate cut and liquidity boost prompt $2.7 billion bond rush
Bankers reported that the central bank of India cut rates and eased monetary policy guidelines on Friday. This led to $2.7 billion in bond issuances from state-owned companies and lenders. The bankers have said that four state-owned firms - REC Housing and Urban Development Corp Power Finance Corp and NTPC – and two state run lenders Indian Bank and Bank of India, will raise an aggregate of 240 Billion Rupees (about $2,7 billion) over the next two week. Reserve Bank of India lowered its key repo by 25 basis points, and left room for further easing. It increased the banking system's liquidity by 16 billion dollars in the next two week. The 10-year yield on government bonds fell by 2-3 basis points, and the 15-to-40-year yields dropped by 7-8 basis points. This increased demand for long-term corporate bond, which had been in short supply. Many long-term investors want to lock in rates and diversify duration due to policy clarity and a stable rate environment. Vineet agrawal, cofounder of Jiraaf - a bond trading site - said that as a result, issuers in the public sector with a good rating are likely to have a strong demand for their bond placements. In the period between January and November, Indian companies raised 10.07 trillion rupees in bonds. The supply of 2025 will also be a record. The bankers who refused to be identified because they were not authorised by the media to speak, stated that PFC would aim to raise 35 Billion Rupees via 15-year bonds. NTPC, on the other hand, could raise 30 Billion rupees using 10-year or fifteen-year papers. HUDCO and REC will likely raise up to 50 billion Rupees each via 10-year deep discount bonds, they stated. Bankers say that Indian Bank and Bank of India both plan to raise 50 billion Rupees via tier II bonds compliant with Basel III. Emails seeking comments from the firms were not answered. The bankers expect that insurance companies will bid heavily for these AAA-rated bonds, given the downward trend of yields. Sachin Bajaj is the executive vice president and chief investor at Axis Max Life Insurance. ($1 = 89.9480 Indian Rupees) (Reporting and editing by Dharamraj Dhutia, Khushi malhotra).
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The head of the agency says that Europe must be on guard against US dominance when it comes to rare earths.
The head of the EU-funded agency that oversees key minerals says, "Europe has taken significant steps to develop its rare earths industry to counter Chinese dominance. But the region must also guard against being overtaken by the United States." Bernd Schaefer is the CEO of EIT RawMaterials. He welcomed Wednesday's publication of a new EU Action Plan to secure crucial raw materials used in electrical cars, wind turbines, and semiconductors. REsourceEU, the plan of the European Commission, includes an investment of 3 billion euros (3.49 billion dollars) in projects to accelerate them and reduce reliance on a single source. Schaefer said in an interview that "it is certainly a step change from the ambition to deliver, but there are still a few things missing." He said that the EU must intensify its negotiations with countries outside of Europe to obtain key minerals. Schaefer said that many memorandums have been signed with international partners in the past few years, but it is just a beginning. "We need to become more deal makers and move away from a prosaic approach and simply talking about everything." He said that Europe must also ensure it doesn't continue to lose important rare earth assets to America. Less Common Metals was recently acquired by USA Rare Earth, and is one of the few firms involved in the key process of turning rare earth oxides to metals and alloys. Schaefer stated that there is a risk of a situation in which the rare earths chain will be pulled into the U.S. at a significant level. "The U.S. might become like a second China in that we would be reliant on magnets imported from another country." ($1 = 0.8584 euro) (Reporting and editing by Andrew Heavens; Eric Onstad)
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Citi raises its outlook, causing copper to reach a record-high and head for a weekly increase
The price of copper reached a new record on Friday, after Citi raised its outlook for the metal. A weaker dollar provided additional support in anticipation of a rate cut expected by the U.S. next week. At 1025 GMT, the benchmark three-month price of copper at the London Metal Exchange had risen 1.4% to $11,609.50 per ton. The metal, which is widely used in construction, manufacturing and power generation, rose earlier by as much as 2.2%, reaching a peak of $11,705. LME copper has gained over 30% since 2025 and is expected to finish the week with a gain of 3.8%. "I believe copper will slowly rise in price. "The funds are now backing it because they see shortages developing," SP Angel analyst John Meyer said, referring a series supply constraints at major mines. Citi expects that copper prices will continue to rise into the early part of next year, and reach an average of $13,000 in second quarter, up $12,000 from its October outlook. Its bull case has also increased to $15,000, from $14,000. Bank of America says that macro-funds will continue to support prices as investors prepare for a soft U.S. economy landing and a growing supply shortage. Meyer stated that such forecasts "help encourage some of the larger funds to invest in copper." It's been gaining momentum for a while now. Citi stated that additional tightness was expected due to U.S. stocks linked to COMEX-LME arbitration. The premium for the LME cash copper contract is still high. Over the next three months, prices have dropped to $35 per ton from $88 on Tuesday, indicating a less urgent need for metal. In China, copper inventories On the Shanghai Futures Exchange, the number of tons traded fell by 9.2% compared to last week. Aluminium fell 0.1%, to $2,902 per ton. Tin dropped 0.8%, to $40,000 Nickel grew 0.2%, while zinc climbed 0.7%, reaching $3,112, after hitting its highest level in nearly a year. Reporting by Tom Daly. Dylan Duan, Lewis Jackson and Dylan Duan contributed to the reporting. Rashmia Aich, Mark Potter and Mark Potter edited the article.
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Gold prices rise on weaker dollar, as investors prepare for US data
The gold price rose on Friday as a result of a weaker dollar and growing speculation on an interest rate reduction in the United States. Markets are now focused on the upcoming U.S. data on inflation ahead of next week's Federal Reserve policy meeting. As of 1017 GMT the spot gold price rose by 0.4%, to $4,225.11 an ounce. However, it was still on course for a weekly drop of 0.1%. U.S. Gold Futures for February Delivery edged up 0.3% to $4,255.90 an ounce. Gold became more affordable to holders of other currencies as the dollar was not far off its five-week low. Lukman Otunuga is a senior research analyst with FXTM. He said that "gold remains somewhat buoyed" by the market's bets on a Fed rate cut next week. Weekly data on Thursday showed that the number of new U.S. applications for unemployment benefits dropped to its lowest level in over three years. More than 100 economists surveyed by predict that the Fed will lower its key interest rate at its meeting on December 9-10 by 25 basis points. Gold is a non-yielding asset that tends to be favoured by lower interest rates. Investors will be watching the September PCE Inflation data, due to be released later today. This data will be the last data release before the FOMC meeting next week. Silver rose by 1.9%, to $58.19 per ounce. This is up 3.1% in the last week, after reaching a record of $58.98 an ounce on Wednesday. Otunuga said that silver is on course for a second week of gains thanks to the strong inflows made into exchange-traded fund. Rate cut expectations, as well as a weaker dollar, have also fueled the upward trend. Silver prices have risen by about 101% this year due to a structural shortage, concerns over liquidity and the addition of silver to the U.S. Critical Minerals List. Palladium rose 1.2% to 1,466.54 and is set to have a modest weekly gain. Platinum, however, was expected to finish the week with a loss. (Reporting Pablo Sinha from Bengaluru, Editing by Elaine Hardcastle).
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Boliden CEO: EU's rare-earths push is 10 year late, and more needs to done
Boliden, the Swedish miner, said that the European Union had acted on rare earths ten years ago. Boliden was commenting on the European Commission plan to invest 3 billion euro ($3.5 billion) in 25 key mineral projects. China, the country that produces 90% of all rare earths in processed form, has recently increased export restrictions. Boliden CEO Mikael staffas said that Europe's inability to produce critical raw materials on its own is a vulnerability which must be addressed despite the long process of making major changes. He said the latest EU initiative was a sign the bloc of 27 countries wanted to act, but that much more work needed to be accomplished. Staffas stated that "the Critical Raw Materials Act we received a few years ago was... a very small step. I believe that EU will have to take many more small steps in order to achieve more independence." Aurubis CEO Toralf Haag stated on Thursday that the European copper industry's biggest producer has not yet seen any positive effects from the act. However, he expects the act to have a positive impact on the sector in the long-term. NO BOLIDEN PROJECTS UNDER EU'S NEW PLAN Boliden produces minerals like nickel and copper that are listed as key resources by the EU. It does not see much benefit in the new initiative which is mainly focused on rare earths and ignores other vital raw materials. Staffas added that the grants were also small. He said that even if the EU commission had allocated us 3 billion euros, it would only last two years for our regular investments. Boliden had forecast 15 billion Swedish crowns (about $1.6 billion) in capital expenditures for 2026. Boliden’s project relating to its Somincor Mine extension in Portugal appears on the list of initiatives introduced under the Critical Raw Materials Act but none fits into the latest Rare Earths push.
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As investors get ready for a Fed rate cut, stocks rise and the dollar weakens.
Investors are confident that the Federal Reserve will cut rates next week despite a crucial reading of U.S. Inflation. This weighed down on the dollar, and helped gold. The European stock market opened higher on Monday, boosted by mining stocks after copper prices reached record highs. STOXX 600 was up 0.3% at mid-morning, after gaining 0.7% in the past week. U.S. Stock Futures are up between 0.2% and 0.4%. This indicates a modest Wall Street rally later. The government bonds that have been the focus of much of the market activity this week traded steadily in advance of U.S. monthly core inflation data. BONDS IN FOCUS This week, Japanese government bonds led the global debt sale. The yields on JGBs of 10 years have reached their highest levels. Highest point since mid-2007 The 30-year yields are at record highs after the Bank of Japan's strongest signal to date this week, that rates will likely rise in this month. Jim Reid, strategist at Deutsche Bank, said that if they proceeded, it would bring the policy rate to 0.75%. This is the highest level since 1995. The yen strengthened 0.18% against the U.S. Dollar this morning, while the Nikkei fell 1.29%. The dollar last fell 0.1% in the day to 154.91 yen. This is down from last week's 10-month peak of 157.9. The dollar index was down 0.1% to 99, and down 0.5% for the week. The dollar index fell 0.1%, to 99. It was also down 0.5% on the week. Investors are buying the Japanese currency against the US dollar, as both countries' interest rates have been moving in the same direction. Carry trades are common where traders borrow yen and then sell it to buy higher-yielding dollars assets like tech stocks or cryptocurrency. Carry trades are at risk if the yen strengthens. "ONE AND DONE?" What's going be interesting about the BOJ meeting: Is it a one-and-done? Fiona Cincotta, City Index's strategist, said that both the Fed and the BOJ will be focusing on this issue. "It feels like there are two major risks events, even though it's December and the world should be slowing down." The expectation that the Fed would cut interest rates by one quarter point on Wednesday, and at least two more in 2026, has led to the weakness of the U.S. dollar. The markets have priced in a Fed rate reduction at 90%. However, this could be the most controversial decision the central bank has made for years because up to five of its 12 voting members publicly stated that they do not want rates reduced further. The September Personal Consumption Expenditures (PCE) Price Index - the Fed’s preferred inflation gauge - is next. It is expected to show an increase of 0.2% in the core measure. This will leave the annual rate at 2.9%. The data on Thursday revealed Jobless Claims The number of people employed fell by 6,000 last week. This may have been due to the Thanksgiving Holiday. Treasury yields remained stable on Friday, after rising the day before. The yields on two-year Treasury bonds fell by 1 basis point, to 3.527% after rising overnight by 5 basis points, while the yields on 10-year Treasury bonds remained virtually unchanged, at 4.11%. COPER SURGES Citi's price forecast was upgraded based on concerns about supply and the expectation of a Fed rate reduction. Brent crude futures are expected to finish the week at $63.2 per barrel, down about 0.1% from the previous day. Gold was up by 0.3%, to $4,221 per ounce. Silver rose 1.7% to $58 per ounce. (Stella Qiu contributed additional reporting from Sydney; editing by Tom Hogue and Shri Navaratnam, Thomas Derpinghaus).
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Local media reports that Norway will acquire two more submarines and long-range missiles
Norwegian newspapers VG and Aftenposten, citing anonymous source, reported that the Norwegian government would announce on Friday plans to purchase two additional German submarines and a separate acquisition of long-range cannon. The order for the submarine comes on top of four submarines that were ordered by Thyssenkrupp, a German company in 2021 at a cost of 45 billion crowns. Aftenposten reported that the updated submarine order would now cost around 100 billion crowns (about $10 billion), partly due to inflationary costs for raw materials and defence equipment. NATO countries are increasing their defence spending under pressure from President Donald Trump's administration in the United States and because they feel uneasy about the ongoing war in Ukraine. Norway is NATO’s monitor of the vast area of 2 million square kilometers (772,000 square mile) in the North Atlantic, which is used by the Russian Northern Fleet's nuclear subs. The Russian submarines, which are based on the Kola peninsula, in the Arctic, near Norway, will be the focus of the mission. Norway also plans to purchase long-range missiles for its army, capable of reaching targets up to 500 km away (310 miles), for 19 billion crowns. Western countries have been compelled to increase their missile attack capability due to the war in Ukraine and the prevalence of missile attacks. The Norwegian Defence Ministry said that it was unable to confirm or deny these reports. The list of decisions made during the King's Council will be published by the government later on Friday.
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Boliden, a Swedish miner, says that it will spend less money in 2026
Boliden, a Swedish miner, said that it would lower its capital spending to 15 billion Swedish crowns (about $1.65 billion) by 2026. This is 500 million crowns below what it plans to spend in 2018. CEO Mikael staffas said that the copper and zinc producer did not have any new major projects. Instead, the spending plan is primarily for existing projects such as a new tankhouse in its Ronnskar facility, the Garpenberg Zinc Mine expansion to 4.5 millions tons in Sweden and the completion and expansion of the Odda Zinc Smelter in Norway. Boliden usually releases its 2026 outlook along with its third quarter results. However, it delayed the release until December to allow for the consolidation of the Somincor and Zinkgruvan Mines that were purchased last year by Lundin Mining. Staffas stated that capital expenditures related to these mines are expected to reach 2 billion crowns by 2026. This is an increase of 500 millions crowns from this year. The group estimated that planned maintenance shutdowns at their smelters will reduce the operating profit in 2026 by 450 millions crowns. This is down from its forecast of 500 million crowns for 2025. Boliden also said that it expects a one-time adjustment to its operating profit of approximately 400 million crowns for the fourth quarter this year, related to metal recovery assessments at Ronnskar. This is after an fire in the tank house closed down the largest production unit of the group in June 2023.
Ghana abolishes taxes on mineral exploration to boost investment
Ghana's finance minister announced that the country will eliminate value-added taxes on mineral exploration and reconnaissance in order to increase investment. The top producer of bullion in Africa is looking to reverse two decades of slow new development.
The levy was introduced 25 years ago in Ghana as part of broader fiscal reforms.
The 15% tax is applied to exploration costs such as drilling, assaying and other related expenses. This increases the upfront costs of companies that are in the early stages of mining project.
Ghana Chamber of Mines and other industry groups have long claimed that the tax discourages greenfield investment, and reduces Ghana's competitiveness against countries like Ivory Coast and Burkina Faso, who exempt exploration of VAT.
Cassiel Ato Forson, during Thursday's presentation of the budget for 2026, told the parliament that eliminating VAT would boost investor confidence, encourage greenfield development, and guarantee the sustainability of the mining sector in the country.
Forson said that the measure is part of a wider VAT review and aims to promote responsible mining, and reduce unregulated prospecting, which has led to degraded forest and waterways.
SMALL-SCALE MINING DRIVES RECORD GOLD OUTPUT
Ghana's small-scale gold exports reached record levels between January and October.
According to data from the finance ministry, shipments soared to 81.7 tons, worth approximately $8.1 billion. This was a first, as they surpassed large-scale exports, which were 74.1 tons, worth $6.6 billion. Ghana had set a target of producing 144.5 tons gold by 2025.
Forson stated that the surge in exports is a result of recent reforms to regulatory laws, which formalised artisanal mines and tightened controls on exports.
The Chamber of Mines has welcomed the removal of VAT.
Michael Akafia said that the VAT on exploration was hurting its competitiveness and causing a blockage in the pipeline.
Gold, bauxite, and manganese are the main minerals in Ghana's mining industry, which contributes to over a third (33%) of its export revenue.
This month, the government began an audit as part of a broader reform to increase earnings in the industry.
Newmont, AngloGold Ashanti, Gold Fields, Perseus, and China's Zijin & Cardinal Namdini are major operators. Christian Akorlie, Emmanuel Bruce and Christian Akorlie (Reporting). Maxwell Akalaare Adombila is the author. Mark Potter (editing)
(source: Reuters)