Latest News
-
Gold reaches a new high after a week-long peak amid hopes for lowered Fed rates
On Wednesday, gold prices were near a one-week-high after the expectation that the U.S. Federal Reserve would lower interest rates in January kept non-yielding metals a favourite asset. At 10:50 am, spot gold was up by 0.8% to $4,161.42 an ounce. ET (1550 GMT), having reached its highest level since November 14, earlier in the session. U.S. Gold Futures for December Delivery rose by 0.4% to $4158.80 an ounce. Edward Meir of Marex, a Marex analyst, said that the focus had shifted from the dollar to a reduction in interest rates for December. He noted gold's increase despite the dollar index remaining steady. Rate-cut bets are "helping gold a little, as is the talk they might nominate a Fed Chairman soon and the front runner Kevin Hassett of the Economic Advisory Committee of the President." Hassett has stated, along with U.S. president Donald Trump, that interest rates should lower than what they are now under Fed chair Jerome Powell. This news gave a boost to gold, which is a non-yielding investment that thrives in an environment of low interest rates. The CME FedWatch tool revealed that traders see 83% of the chance of a Fed cut in rates next month compared to just 30% a week earlier. The number of Americans who filed new claims for unemployment benefits dropped last week. This indicates that layoffs are still low, but the labor market struggles to create enough jobs to accommodate those without a job amid the lingering uncertainty of the economy. The U.S. consumer's confidence also declined in November, as consumers became more worried about their jobs and financial prospects. These data were released in response to a recent series of dovish remarks from Fed policymakers. Most research banks expect gold to exceed $4,000 an ounce by 2026. Deutsche Bank raised its gold forecast for 2026 to $4,450 per ounce, up from $4,000 citing stable investor flows and persistent demand by central banks. Silver spot rose by 2.2%, to $52.52, platinum gained 0.8%, to $1,565.20 and palladium increased 0.6%, to $1,405.76. (Reporting and editing by Sahal Muhammad and Krishna Chandra Eluri in Bengaluru, and Anjana Anil from Bengaluru)
-
ASIA COPPER WOEEK-Codelco’s record China copper deal sparks threats of walking away, sources say
The relevance of the benchmark to Chinese buyers is being questioned Three Chinese customers have said they are willing to walk out. Amy Lv, Tom Daly and Lewis Jackson SHANGHAI/LONDON - Codelco, the Chilean copper giant that offers record-high prices to Chinese copper buyers is leading some to announce they will not sign the term contracts for next year as concerns grow over the relevance of this benchmark to Chinese buyers. Codelco's premium is often used to reference global copper supply contracts. Codelco is by far the largest copper producer in the world, and China is its largest consumer. According to three sources with knowledge of the situation, Codelco only offered Chinese buyers a premium of $350 per ton over London Metal Exchange rates. This is a significant increase from the $89 per ton that was agreed upon during negotiations last year. One source said that the offers were on a "take it or leave it" basis. Decisions are expected to begin next week. Sources with knowledge on the subject say that at least three Chinese customers of Codelco have indicated they are willing to opt out of term contracts and instead opt for spot deals this year. When asked about the premium, a fourth customer who has not yet received an offer said: "Who would buy at this price?" Codelco didn't immediately reply to questions emailed about the offers. The willingness of delegates to forgo the closely-watched term deals highlights growing questions among delegates gathered at the World Copper Conference Asia in Shanghai about the benchmark's relevancy for China. Three traders said that the high premium is partly due to how easily Codelco's cargoes are delivered to the U.S. Comex, where the forward prices for the next year are hundreds more than the LME. Three traders said that the trades were difficult for Chinese buyers and suggested that the premium was instead aimed at large trading houses. A fourth source, however, said that lower offers will only encourage Chinese buyers who are interested in exporting their cargo to the U.S. to sell to traders. The commercial nature of the issue made it necessary for all sources to remain anonymous. Chinese customs data show that China's imports from Chile of refined copper have been steadily declining since 2023, both in absolute value and as a percentage of total imports. Fears of a copper shortage next year led to a spike in LME copper prices to an all-time high of $11,200 per ton at the end of October. As of 0703 GMT, the metal was trading at $10 868 per ton. Codelco is the largest copper miner in the world. It has offered to pay its European customers a record premium of $325 per ton for 2026. This represents a 39% increase year-over-year.
-
Sweden grants green steel startup Stegra $41 million in funding
Sweden announced on Wednesday that it has granted 390 million crowns (41 million dollars) to green steel startup Stegra, as the Swedish firm gathers new funding to complete its facility in the north. The Swedish Energy Agency stated that the project had the potential to accelerate the transformation in the iron-and-steel industry. The authority stated that the support will increase Stegra’s chances to secure the additional capital needed. Stegra, who last year announced it had secured loans worth 6.5 billion euro ($7.5 billion) and equity, announced in October it was raising $1.1 billion to complete a plant which will use hydrogen produced on site from renewable electricity for its production. The energy agency said that "the support for Stegra is contingent on the company being in a position to demonstrate by spring 2026, at the very latest, that it has managed to secure enough capital to complete the Project." Sweden is leading Europe in its efforts to transition from fossil fuels to non-polluting electricity. But, the green shift also faces challenges, including the bankruptcy of Northvolt, a battery manufacturer. Henrik Henriksson, CEO of Stegra, said that his company has secured about half the money it needs. He expects the banks to provide the remaining funds within six months. He added that extra cash from the Swedish government would send an important signal to investors and banks that Sweden supported the project. STEGRA SAYS NOW IT CAN TAKE "NEXT STEP" Stegra received 1,2 billion crowns in a package of financial support that was agreed upon between Sweden and the European Union. A further 1.6 billion crowns of the package were withheld. Stegra has applied to the agency for this money again, but only part of it was received. Stegra wrote in written comments on Wednesday that "despite the gap between what the government asked for and what EU approved, we can take the next steps together with the financiers." This project is a leveler in comparison to other projects in Sweden or Europe.
-
Apple sued by US group over Congo conflict minerals
Apple has denied the allegations, but a U.S. advocacy group filed a suit in Washington. The lawsuit accuses Apple of using minerals that are linked to human rights violations and conflict in the Democratic Republic of Congo (DRC) and Rwanda. International Rights Advocates, a group based in the United States, has sued Apple, Tesla and other tech companies over cobalt sourcing. However, U.S. court dismissed this case last year. In December, French prosecutors dropped Congo's conflict mineral case against Apple subsidiaries citing a lack of evidence. An investigation is ongoing in Belgium into a criminal complaint related to this issue. Apple has denied all wrongdoing as a response to Congo's suits, saying that it had ordered its suppliers to stop sourcing material from Congo and Rwanda. Apple did not respond immediately to requests for comments on the latest complaint. In a complaint filed Tuesday at the Superior Court of the District of Columbia, IRAdvocates - a Washington nonprofit that uses litigation to curb rights abuses - said that Apple's supplier chain still contains cobalt and tantalum, which are linked to forced and child labour, as well as to armed groups from Congo and Rwanda. CONGO IS a major source of COBALT and TIN The lawsuit asks the court to determine that Apple's conduct is in violation of consumer protection laws, an order stopping alleged deceptive advertising, and reimbursement for legal costs. It does not request monetary damages, or class certification. The lawsuit claims that three Chinese smelters - Ningxia Orient JiuJiang and Jiujiang Tanbre - processed coltan, which U.N. investigators and Global Witness claim was smuggled via Rwanda after armed group seized mines on the eastern Congo. This material is then linked to Apple's supply chains. The lawsuit claims that a study by the University of Nottingham published in 2025 revealed forced and child labor at Congolese sites connected to Apple suppliers. Requests for comment from Ningxia Orient JiuJiang JinXin, and Jiujiang Tanbre were not immediately responded to. Congo, which provides about 70% of world cobalt, and significant quantities of tin tantalum, and tungsten (used in computers, phones, and batteries), did not respond immediately to a comment request. Rwanda did not respond immediately to a comment request. 'NO REASONABLE BASE FOR LINKS WITH ARMED GROUPS.' Apple has denied using minerals from conflict zones and forced labour repeatedly, citing audits as well as its code of conduct for suppliers. In December, Apple said that "no reasonable base" could be found to conclude that any refiners or smelters in its supply chain funded armed groups in Congo and neighbouring countries. Authorities in Congo claim that armed groups are using mineral profits from eastern Congo to fund the conflict, which has resulted in thousands of deaths and hundreds of thousands being displaced. They tightened controls over minerals to choke funding and squeeze global supplies. Apple claims that 76% of the cobalt used in its devices will be recycled by 2024. However, IRAdvocates alleges that its accounting method includes ore from conflict areas.
-
Gold reaches a new high after a week-long peak amid hopes for lowered Fed rates
On Wednesday, gold prices were near a one-week-high after investors expected that the U.S. Federal Reserve would lower interest rates in January. At 9:25 am, spot gold was up by 0.3% to $4,144.06 an ounce. ET (1425 GMT), having reached its highest level since November 14, earlier in the day. U.S. Gold Futures for December Delivery were unchanged at $4,140.30 an ounce. Edward Meir of Marex, a Marex analyst, noted that gold was rising despite the dollar index increasing by 0.2%. Rate-cut bets are "helping gold a little, as is the discussion that they might nominate a Fed Chairman soon and the front runner Kevin Hassett of the Economic Advisory Committee of the President." Hassett has stated, along with U.S. president Donald Trump, that interest rates should lower than what they are now under Fed chair Jerome Powell. This news has given a boost to gold, a non yielding asset that thrives in an environment of low interest rates. The CME FedWatch tool revealed that traders see 83% of the chance of a Fed cut in rates next month, as opposed to 30% one week earlier. The number of Americans who filed new claims for unemployment benefits dropped last week. This indicates that layoffs are still low, but the labor market struggles to create enough jobs to accommodate those without a job amid the lingering uncertainty of the economy. The U.S. consumer's confidence fell in November, as consumers became more worried about their jobs and financial prospects. These data were released in response to a recent series of dovish remarks from Fed policymakers. Most research banks expect gold to exceed $4,000 an ounce by 2026. Deutsche Bank raised its gold forecast for 2026 to $4,450 per ounce, up from $4,000 citing stable investor flows and persistent demand by central banks. Silver spot rose 1.5%, to $52.19 an ounce. Platinum was up 0.6%, at $1,562.96, and palladium gained 0.7%, to $1,407.50. (Reporting and editing by Anjana Anil in Bengaluru, Noel John at the New York Times)
-
Mamdani's reaction to the NYC comptroller's decision to drop BlackRock is a test for Mamdani
Brad Lander, New York City Comptroller, is urging pension fund officials in the city to rebid $42.3 billion to BlackRock due to climate concerns. This is the first major step taken by a Democrat against pressure from Republican allies who support the fossil fuel industry. Lander's tenure in office ends Dec. 31. But his recommendation announced on Wednesday could put Mayor elect Zohran Mamdani under pressure when he assumes office in five weeks. BlackRock has indicated that it will try to retain the business. Mamdani’s appointees are in key positions and will have some influence over the pension boards, which decide where to invest retirement money for 800,000. Lander, in a memo he sent to other trustees of pension funds on Nov. 25, urged them to reevaluate their contracts with New York's BlackRock. BlackRock is the largest asset manager in the world and also the largest manager of retirement assets for the city. Lander pointed to what he described as "BlackRock’s restrictive approach to engaging" with approximately 2,800 U.S. firms in which the company owns more than 5 percent of shares. 'Abdication of Financial Duty' BlackRock, under pressure from the Trump Administration in February, said that it would not try to control businesses through its discussions with executives. This was contrary to Lander's and other investors who were environmentally conscious, as they wanted to pressure executives to disclose emissions. Lander stated in an interview that the change is "an abdication from financial duty" and makes them incapable of meeting our expectations regarding responsible investing. The pension boards, which traditionally follow the lead of the comptroller’s office, must still approve his recommendation. Mamdani's representatives did not answer any questions. Mark Levine, Lander's successor, was represented by a representative who said that he would review the recommendations. Lander, who was a rival of Mamdani's during the mayoral race, but became an ally, recommended to the pension plans that BlackRock continue managing non-U.S. index mandates, and other products. Lander recommended that the three systems continue to use State Street for managing $8 billion of equity index assets and drop their deals with Fidelity Investments or PanAgora. He said they also did not push companies enough on environmental issues like decarbonization. Armando Senra is the Head of Americas Institutional Business at BlackRock. In a letter sent to Lander by a BlackRock spokesperson, Senra said that Lander's claim that BlackRock had abdicated their financial responsibility and placed pensions in danger due to climate change was "another instance of the politization of public pension funds which undermines retirement security for hardworking New Yorkers." Senra stated that if the pension officials accept Lander's recommendations, "we are looking forward to demonstrating our breadth and depth and the tremendous value" we provide to the city and public servants. Other fund managers didn't immediately comment. WASHINGTON PRESSURE A number of Republicans, some from fossil-fuel-producing states, have withdrawn money from BlackRock and other money managers, accusing them of basing investment decisions on social or environmental issues. New York City funds are the first major asset owners with a liberal or Democratic lean to do so. Lander confirmed earlier reports that he was "seriously" considering a run for Congress in the next election year. He said, however, that his recommendation about BlackRock had "nothing to do" his future plans. Lander noted that 46 out of 49 fund managers in the city had decarbonization plans that met his expectations. Richard Brooks, director of the climate finance program for environmental advocacy group Stand.earth via email on Wednesday, praised Lander’s plan to drop BlackRock. Brooks stated that it was important for the pension trustees to take action, including those appointed by the mayor.
-
The UK government permits some new oil and gas fields but is firm on taxes
The government announced on Wednesday that it will allow oil and natural gas to be produced on existing fields or in close proximity to them, but with certain conditions. It also shattered the hopes of oil and gas producers for an early termination of windfall tax on their sector. During its election campaign in 2024, the Labour government pledged to stop issuing new oil and natural gas licenses. The Department for Energy Security and Net Zero announced that the move on Wednesday allows the government the option to issue new oil and natural gas licenses, if the licences do not require any new exploration and are linked to existing infrastructure and fields. The Winter Tax will remain in effect until 2030 The government did not make any changes in its budget presentation on Wednesday. It has maintained one of the toughest tax regimes in the world for oil and natural gas producers, which includes a 38% windfall tax, increasing the total tax burden to 78%. Gas prices are higher than the threshold set by the government for so-called Energy Profits Levy. Once both prices fall below the thresholds that are updated regularly, windfall taxes will be disabled. The government also announced on Wednesday that the Oil and Gas Price mechanism would replace the EPL in March 2030. This would happen at a 35% rate if the oil and gas price stays above certain thresholds.
-
UK cuts household energy bills to 150 pounds per year
Finance Minister Rachel Reeves announced on Wednesday that Britain would reduce energy bills in the UK by an average of 150 pounds ($198.23). This will be achieved by shifting some costs into general taxation, and by cutting a scheme for helping to pay for home improvement. Reeves stated that the Energy Company Obligation will be abolished in April 2026. This obligation, which requires energy companies to fund measures such as insulation and new heating system for low-income homes, is a measure that forces them to pay. Last month, the National Audit Office raised concerns about possible fraud and low-quality work undertaken by the ECO programme. Green groups criticised the decision to abolish it entirely rather than reform it. Ami McCarthy (Greenpeace UK, head of politics) said that cutting the insulation program and funding could leave millions of households trapped in cold and damp homes. Budget documents revealed that 75% of the Renewables Obligation cost, which is used to pay for renewable energy production, will be transferred to general taxes in order further reduce the energy bill. The price cap set by the regulator Ofgem is expected to rise by around 12% in January compared to the 1,568 pounds per year it was when Labour took power in July 2024.
Copper prices rise above $11,000 as US rates are likely to be cut
The copper price rose on Wednesday to its highest level in nearly a month, on the back of growing expectations that U.S. Federal Reserve would cut interest rates by December. Prices are also expected to rise after the outflows from U.S. stock markets.
The benchmark three-month price of copper at the London Metal Exchange rose 1.6% to $10,993.50 per metric tonne by 1033 GMT. It had previously reached $11,025 – its highest level since October 30. On October 29, the metal used for power and construction reached a record high at $11,200, boosted by concerns about a tighter supply of copper from the Grasberg Mine in Indonesia in this year and next.
Ewa Mannthey, ING commodities analyst, said that "upside risks" for copper were increasing, as the balance would tighten into 2026 due to supply challenges, low inventory levels and continuing trade distortions. Data on Tuesday showed that U.S. Retail Sales rose less than anticipated and that consumer confidence declined, which boosted expectations of a Fed rate cut soon. Lower interest rates are expected to support the demand for metals that depend on growth. Nicholas Snowdon said that the global copper cathode markets are facing a surplus between 350,000 and 400,000 tonnes this year. However, there will be a deficit next year of 500,000 tones of copper concentrate.
Snowdon, an influential copper bull, stated that the LME copper price would have to increase to bring metals back from the United States to global markets. The United States currently holds 70% of all global copper cathode inventories. Snowdon estimates that this could reach 90% by the first quarter 2026. Stocks of copper in LME registered warehouses
Other LME metals include aluminium, which rose 1.6%, to $2,845.50 per ton. Zinc also increased by 1%, to $3,022.50. Lead gained 0.3%, to $1,986, while tin grew 0.8%, to $37,735; and nickel remained unchanged at $14,870. (Reporting and editing by David Goodman Additional reporting by Dylan Duan)
(source: Reuters)