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FT reports that China will restrict access to Nvidia H200 chips despite Trump's export approval.
Beijing will limit access to Nvidia H200 advanced chips, despite the?U.S. The Financial Times reported Tuesday that President Donald Trump had decided to allow exports of the technology to China. According to a report, regulators in Beijing are discussing ways to allow limited access to Nvidia H200 chips, the second-best generation artificial intelligence chip from Nvidia. This would be a major obstacle for Nvidia, and other leading?U.S. After Trump's announcement on Monday, chipmakers are now able to target the China market. Nvidia's shares, which were up as much as 2 percent in premarket trade, retreated after the report, and ended with a gain of 0.6%. The company did not respond immediately to a request for a comment about the report. Beijing is retaliating against American restrictions by pushing back on the use of U.S. technologies, particularly Nvidia chips. Nvidia has been unable to grow in one of the largest markets for AI chips, China. Trump stated in a Monday post on?Truth Social that the export of H200 chips would be allowed?with a 25 percent fee on such sales. Ipek Ozkardeskaya is a senior analyst with Swissquote Bank. She said that the approval may only have 'limited impact' on Nvidia’s business in China, unless they are allowed to export other chip lines, such as Blackwell and Rubin. In premarket trading, shares of AMD and Intel also saw their gains halved and were last up 0.3%. Nvidia's gains this year are nearly 40% higher than the 16.4% increase in the S&P 500 index. (Reporting from Kanchana Chkravarty, Bengaluru. Additional reporting by Arsheeya Bajiwa. Editing by Arun K. Koyyur.)
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Workers and Chilean regulators flagged the risk of Teck's Quebrada Blanca Dam
Documents reviewed by the. Five complaints were filed between July 28 and august 8 about the cracks and leaks. Teck has cut the production guidance for Quebrada Blanca because of a tailings embankment problem that's been occurring since 2024. Teck responded to questions by saying that the tailings dam was stable and safe and construction is progressing. Teck said that there was no risk to the employees or the facility's safety. The documents obtained through a request for public records from Sernageomin also show Teck's response to the regulator, stating that the problems had been resolved and that the workers were no longer at risk. Initial concerns of workers were a result of a leak in late July. Sernageomin received a letter from a worker on July 28 stating that the dam wall was leaking. Sernageomin said that the inspection of August 1 was partly prompted by this complaint as well as a second complaint about lack of personal protective equipment. Workers continued to complain in the days that followed, including starting on August 3 about a large crack along the top wall. One complaint stated that the information provided by the company was not clear. Sernageomin received a letter from another person: "Teck employees ignore all that is happening and don't want stop producing." I beg you to come to work." Sernageomin inspections conducted on August 1 and 2 identified a horizontal crack that ran 240 meters (790 feet) across the top of the main wall. This left an 18-centimeter hole. The inspection also discovered pools of water near the base of the dam wall and criticised Teck for failing to report the problems quickly. In a signed inspection report by Sernageomin representatives and Teck representatives, the company stated that it must notify the service immediately of any incidents. In a report of follow-up dated 5 August, Sernageomin stated: "This Service is concerned with what was observed on the field in regards to operational findings on deposit wall. Specifically the water seepage on the crest." According to documents reviewed by, Teck began sending weekly monitoring reports to Sernageomin in early August. Teck stated in its reports, letters, and presentations to Sernageomin as well as the minutes of weekly meetings held with representatives of regulators that it had conducted drills for scenarios of structural collapse and was preparing a root cause analysis of the leaks and cracks. Teck said the cracks which appeared at the end of July were normal for this type dam construction. They were repaired quickly. It also fixed a leaky pipeline that "resulted" in water discharge around that time. Teck stated that "work is proceeding as planned to allow full ramp-up for QB." Analysts believe that the problems at Quebrada blanca are a major reason why Teck sought a merger between Anglo American and Teck, which would allow them to share operations with the nearby Collahuasi Mine. Anglo American said that it supported Teck's Quebrada Blanca strategy and had experience with similar tailings problems at its Quellaveco Mine in Peru. Teck shareholders will vote on the transaction on Tuesday. Analysts say that if the combined company fails to achieve its output targets in the next two years, it could affect the valuation of the new company. Teck did not mention the Sernageomin Inspection, the crack, or leaks in its financial disclosures. Teck has addressed the reasons why the miner had to cut back on production and spend $420 million next year to fix certain core issues at the tailings pond. After the collapse of the Brumadinho tailings in Brazil, which killed 270 people in 2019, safety standards for tailings are being scrutinized worldwide. According to tailings experts, cracks and leaks are red flags that indicate a dam's stability. They require constant monitoring and the identification of its root cause. They are similar to symptoms in the doctor's clinic. Rennie Kaunda is a professor of mining engineering at Colorado School of Mines. He said that they may be signs of a major illness or disease. (Reporting and editing by Veronica Brown, Rosalba o'Brien and Veronica Brown; Additional reporting by Fabian Cambero and Divyarajagopal from Toronto and Santiago)
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Copper prices drop from record highs; Market awaits Fed policy
Prices of copper fell on Tuesday due to profit-taking after a 'rallying' rally, concerns about a possible slowdown in U.S. interest rate cuts and concern over Chinese demand. Benchmark three-month Copper on the London?Metal Exchange?was 1% lower at $11,523.50 a metric tonne by 1015 GMT. It had reached a record high of $11,771 a metric tonne on Monday. LME copper prices have risen 31% this year. About 10% of the increase has occurred in the past few weeks. Ole Hansen is the head of commodity strategy for Saxo Bank, a Copenhagen-based bank. The U.S. has seen a surge in metal flows as people expect tariffs to be imposed. The copper?inventory in U.S. Comex Warehouses has more than doubled during the last?six month, reaching?439 510 short tons (398 717 metric tonnes). Hansen stated that "a bit of caution has emerged ahead of tomorrow's (Federal Open Market Committee meeting), which could be the reason behind the profit-taking today." Metals and other financial markets, such as stocks, have eased ahead of a Federal Reserve rate cut expected this week. The focus will be on future rates cuts. Markets are predicting that there will be fewer rate reductions in 2026 due to lingering concerns about inflation and the resilience of?the U.S. economic. Shanghai copper has gained 25% this year. Shanghai copper is up 25% this year. Some investors in China, the world's largest metals consumer, have lowered their expectations of near-term stimuli measures after a meeting with top Chinese leaders. Other metals include LME aluminium, which fell 1% to $2858.50 per ton. Zinc also declined 0.4%, to $3107.50. Lead, too, lost 0.4%, to $1991.50. Tin dropped 0.3%, to $39755, while nickel rose 0.2%, to $14,870. ($1 = 7.0702 Chinese Yuan Renminbi)
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The global government bond market is stable after the recent selloff. A major Fed meeting looms.
On Tuesday, the global bond sale paused a bit and stocks began to drift as traders focused on the Federal Reserve meeting that was to be held next week. They also considered the potential implications of the U.S. permitting Nvidia’s second-best chip to be exported to China. The Reserve Bank of Australia also?held? rates steady on Tuesday as expected, but it was more notable that they ruled out any further policy easing, and warned that the next step could be upwards if inflation pressures are stubborn. The Australian dollar was just a few cents shy of its near three-month peak. Bank of Canada, Swiss National Bank and both are expected to keep rates unchanged when they meet respectively on Wednesday and Thursday. However, comments made by Isabel Schnabel, a member of the European Central Bank's board of directors, have caused a stir, despite ECB not deciding policy until next Monday. She warned that if rates are left unchanged too long, it could lead to a passive easing in monetary policy. These remarks caused yields for German government bonds of all maturities to rise on Monday by the most in recent months. They also increased yields for U.S. Treasury Bonds. The 10-year German benchmark rate was around a 9-month high at 2.84%. Meanwhile, the 10-year Treasury Rate fell by a similar amount to 4.15%. Stocks also appeared to be?fairly calm. European and U.S. stock futures both rose a little bit on the day. Asian stocks, however, fell. FED IN FOCUS The Fed's meeting on Wednesday will be interesting because of the impact that worries about Japan's fiscal situation have had on Japanese government bond rates. Investors should be aware of more than just the 25 basis point rate reduction. "I think the markets could be shocked by the Fed chair Powell's tone and the summary of the economic projections," said Erica Camilleri, senior macro global analyst at Manulife Investment Management. They will also reveal whether the next Fed chairman will be a nervous body about future rate cuts or happy to follow President Trump's wish for looser policies. Kevin Hassett, White House Economic Advisor and top candidate for the Fed chair role, stated in an interview that interest rates should be continued to fall. This raises questions about the Fed's future operations. What happens when we consider 2027 and '2028? Does this Federal Reserve raise rates when we see an acceleration in growth? Is this a Federal Reserve with an easing bias? "Even if we have a reacceleration of growth and inflation, they will stay at the same rate?" said Camilleri. NVIDIA RISES ON CHINA SALES NEWS Investors also tried to understand the implications of U.S. president Donald Trump's statement that Washington would?allow Nvidia H200 processors, Nvidia’s second-best artificial Intelligence chips, to export to China, and collect a 25 percent fee on sales. Nvidia shares rose around 2% during premarket trading, but Chinese tech stocks fell both onshore and in Hong Kong. Hong Kong's Hang Seng Tech Index lost almost 2%. The currencies were also fairly stable. The euro was last worth $1.1649 and little has changed. Higher European yields are being matched by higher U.S. yields, while sterling is 0.22% higher, at $1.3347. The yen remained flat at $156.1 per dollar, after initially weakening in the aftermath of a powerful earthquake which rocked Japan. Oil prices in commodities stabilized after a 2% drop in the previous session, as participants in the market kept an eye on talks to end Russia’s war in Ukraine. Brent crude futures fell 0.2% to $62.3 per barrel. U.S. West Texas Intermediate Crude was down 0.3% at $58.69. Reporting by Ankur banerjee from Singapore and Alun john in London. Editing by Shri Navaratnam, Saad Sayeed
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Nvidia gains as Trump permits some AI chip sales in China
Nvidia's shares increased 1.7% on Tuesday in premarket trading after President Donald Trump announced that he would?allow the sales of its H200 chip to approved Chinese customers, alleviating concerns about access to one of Nvidia's biggest?markets. Trump's decision seems to have settled the debate about whether Nvidia, and its competitors should maintain their global leadership by selling their AI chip to China or not. After Beijing told companies to stop using U.S. tech, it is not clear if the move will lead to new sales. Nvidia has been hampered by the restrictions that prevent it from selling?advanced AI processing units to China despite a strong global market. Morningstar analysts stated in a 'note' that the U.S. had?gone backwards and forwards on restrictions and could do so in the future. But now, we?see at least a pathway to meaningful AI revenue in future from?China. Trump announced in a Monday post on Truth Social that the export of H200 chips - the second-tier AI chip from the company - will be allowed with a 25% surcharge. Ipek Ozkardeskaya is a senior analyst with Swissquote Bank. She said that the approval may have a limited impact on Nvidia’s business in China, unless they are allowed to export any other chip lines, such as Rubin or Blackwell. Trump said that the U.S. Commerce Department was finalizing details. The same approach would also apply to other AI chip companies such as Advanced Micro Devices, Intel and Advanced Micro Devices. AMD and Intel?rose respectively 1.3% and 0.8% in early premarket trading. China is also increasing its chip manufacturing capability to reduce dependence on Nvidia. Morningstar said that there is "no assurance" the H200 will be widely used by Chinese parts compared to domestic ones. Nvidia's stock has increased by nearly 40% this year compared to the S&P 500 index, which rose 16.4% in the same time period. (Reporting from Kanchana in Bengaluru, Editing by Tasim Zaid)
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Simandou iron ore project begins supply
Iron ore prices continued to fall on Tuesday as the 'Simandou' project in Guinea in West Africa shipped its first ore. This boosted the prospects of more supplies at a time when?demand for the top consumer China will decline due to falling steel production. The daytime closing price of the most traded iron ore contract at China's Dalian Commodity Exchange was 757.5 yuan (US$107.22). The session began with a?750 yuan low, the lowest since 10 July. It was headed to a fifth consecutive session of losses. As of 0940 GMT the benchmark January iron ore price on the Singapore Exchange was down for a third straight?session. It fell by 0.35%, to $101.7 per ton. This is its lowest level since November 12. Rio Tinto, the largest iron ore supplier in the world, announced on its WeChat page on Monday that the first shipment from the Simandou Project has left Guinea. The mine will have a production capacity of 120,000,000 tons per year, making it the largest iron ore mine in the world. China imports 80% of its iron ore from Australia and Brazil. Analysts say that the share of Guinean supply will likely decrease with increased production. Analysts at Xinhu Futures wrote in a report that the near-month contract 'will continue to be under pressure due to high supply, swollen inventory, and a decreasing demand. This year, crude steel production in China will be the lowest in six years. Coking coal and other steelmaking ingredients, coke and coke, also fell, by 2.21% and 2.7% respectively. This was due to lingering concern over an?increasing availability. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 1.57%, while hot-rolled coils dropped 1.42%. Stainless steel also declined 0.32%. Wire rod rose 0.38%. ($1 = 7.0651 Chinese Yuan Renminbi)
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Gold prices rise as the markets prepare for Fed guidance regarding easing path
Investors positioned themselves for the widely anticipated December Federal Reserve rate cut. However, attention has now shifted to the policymakers' two-day meeting that begins later that day. By 0920 GMT, spot gold had risen 0.47% to $4208.39 an ounce. U.S. Gold Futures for February Delivery rose by 0.48% to $4237.80 an ounce. Linh Tran is a market analyst for XS.com. She said that although confidence in future rate cuts remains, their signals suggest a more cautious and gradual approach to easing. According to CME’s FedWatch Tool the markets now assign an 89% probability of a rate cut of 25 basis points when the policy meeting concludes Wednesday. However, the focus is on any signs about the future. Gold is a good example of a non-yielding asset that benefits from lower interest rates. Zain Vawda is an analyst with MarketPulse. Analysts expect to see a "hawkish" cut this week, accompanied by forecasts and guidance that indicate a high threshold of further easing next year. The U.S. The Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE), was in line with expectations. Consumer sentiment also improved in December. The private payrolls in November showed their biggest drop in over 2-1/2 years, but the jobless claims for the week ending November 28 fell to a 3-year low. Silver rose by 1.17%, to $58.80 an ounce. Analysts cite tight physical supply and depleted inventory as the main reasons for the rally, which is also aided by macro-economic conditions that are supportive and the expectation of Fed rate reductions. Dat Tong is a senior financial markets analyst at Exness. He said that silver prices may consolidate into a broad range of $55-60 depending on the monetary policy expectations. Palladium increased 0.6%, to $1474.00 an ounce. Platinum rose 0.68%, to $1653.40 an ounce. Reporting by Arunima Kumna, Pablo Sinha, and Ishaan Arora from Bengaluru. Editing by Sherry Jab-Phillips and Louise Heavens
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Twenty dead after fire breaks out in Indonesian Jakarta at a seven-storey building
An official confirmed on Tuesday that 20 people were confirmed dead after a fire broke out in a seven-storey structure in Indonesia's capital,?Jakarta. Susatyo purnomo condro, the head of Central Jakarta Police, told reporters that the fire had been put out and they were still searching for any other victims in the building. Condro reported that the fire started on 'the first floor around noon and spread to the upper floors. He said that some employees were eating lunch in the building at the time, while others had already left the office. He said that as of Tuesday afternoon the death toll was 20. "Now, our focus is still on evacuating the victims and cooling down the fire," Condro said. Terra Drone Indonesia is located in this building. They provide drones to clients for aerial surveys, from the mining and agriculture sectors. According to its website, the company is "the Indonesian division of Japanese drone company Terra Drone Corporation." Kompas TV broadcast footage of dozens fire fighters attempting to evacuate people from the building. Some were carrying bodybags. Some workers have also been seen using portable ladders to escape from high floors. Email requests for comments from both companies were not immediately responded to. (Reporting and editing by David Stanway; Ananda Teresia, Stefanno Sulaiman)
Gold falls to a one-week low after traders reduce US rate cuts bets
The price of gold fell to its lowest level in over a week Tuesday, as faded bets that the Federal Reserve would cut interest rates next month weakened demand before delayed U.S. Economic Data releases this week.
As of 1213 GMT spot gold was down 0.1% to $4,039.71 an ounce, after reaching its lowest level since November 10, earlier in the session.
U.S. Gold Futures for December Delivery fell by 0.9% to $4.039 an ounce.
Market participants are pricing in interest rate reductions for the United States following more hawkish remarks from Fed officials, said UBS analyst Giovanni Staunovo.
Gold prices are expected to drop soon as the Fed is still cutting rates multiple times in the next quarters and central banks continue to diversify into gold.
The CME FedWatch tool revealed that the markets have reduced their bets on a rate reduction next month from 67% to just under 46%.
Last week's end of the longest U.S. shutdown resulted in a stoppage of official economic data. This left policymakers and traders blind before next month’s Fed policy meeting.
The traders had hoped that the return of official data could make the case for an interest rate cut in December, but their hopes have faded since more Fed officials signaled caution last week.
Fed Vice Chairman Philip Jefferson said that on Monday, the central bank must "proceed gradually" with further rate reductions.
Gold that does not yield tends to perform well when interest rates are low and in times of economic uncertainty.
Investors will look for additional clues in the release of minutes on Wednesday from the Fed's most recent meeting, and the September non-farm payrolls that are due Thursday.
"We continue to see a long-term positive fundamental backdrop for the gold market." "The U.S. economic climate continues to cool. U.S. rates will fall, and the U.S. currency should weaken in response," said Julius Baer's Carsten Menke.
Palladium rose 0.7%, to $1,402.73, while platinum edged up marginally at $1,534.30. (Reporting and editing by Alexander Smith, Emelia Matarise and Jan Harvey; reporting by Noel John from Bengaluru)
(source: Reuters)