Latest News
-
Investors await Fed decision, Powell's speech as gold gains more than 1 percent
Gold prices rose more than 1% in Wednesday's session as investors found it attractive after the metal fell to its lowest level in three weeks during the previous session. The Federal Reserve's rate-cut decision and Jerome Powell’s speech are at the forefront. As of 0748 GMT spot gold rose 1% to $3,991.59 an ounce after falling to its lowest level since October 6, on Tuesday. U.S. Gold Futures for December Delivery gained 0.6%, to $4,005.60 an ounce. Peter Fertig, Quantitative Commodity Research's analyst, said that bargain-hunting might be a good way to support gold because its price has dropped by more than 10%. This makes gold attractive because the gold story remains valid. Fertig continued, "There may also be central bank currency managers who saw a great opportunity to purchase a little more gold when the price dropped." On Wednesday, U.S. president Donald Trump started the final leg in his Asia tour by arriving in South Korea. He was optimistic that he could advance an unresolved trade deal with President Lee Jae Myung as well as reach a truce on a trade dispute with Chinese President Xi Jinping. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to sap the demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases," ANZ stated in a report. Investors are looking for any comments from Powell that will be forward-looking. Gold that does not yield is a good investment in low interest rate environments and times of economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Silver spot rose by 2%, to $47.98 an ounce. Platinum was up 0.6%, at $1,595.46, and palladium was up 1%, to $1,407.25. (Reporting and editing by Sumana Nady, Sherry Phillips, Eileen Soreng, Sonia Cheema, and Ishaan Aroo in Bengaluru)
-
Finnish utility Fortum warns about lower power output after missing earnings forecast
The Finnish utility Fortum announced third-quarter earnings on Wednesday that were well below analyst expectations. They cited weaker electricity generation and warned of lower outputs for the rest of 2025. Fortum's earnings declined due to reduced production volumes and lower hydro inflows. The comparable operating profit for July-September fell to 97 millions euros ($113million), down from the 158 million euro figure of a year earlier. This is below the median analyst's estimate of 114 million euros in a survey provided by the company. Markus Rauramo, Chief Executive Officer of the company, said that the decrease in the Generation segment result was primarily due to a lower generation volume but also because hedge prices were lower. Lower hydro inflows, and an extended outage of Sweden's Oskarshamn Nuclear Plant, which the utility co-owns along with Germany's Uniper led to the decline. Fortum has cut its nuclear generation forecasts for this year. It expects a decline of 3.6 Terawatt Hours (TWh), compared with the 2.9 TWh predicted in August. Fortum, despite lower generation volumes, achieved an average power price of 46.11 euros per megawatt hour (MWh) during the third quarter. This is up by two euros compared to last year. The increase was mainly due to higher spot prices and better physical optimisation. Rauramo stated that the industrial demand in Scandinavia, and in particular in Sweden, has slowed down after initially showing signs of improvement. He said that the current political and regulatory uncertainty in the Nordics can influence the timing of major industrial investment decisions.
-
Everest tourism is halted in Nepal and Tibet due to heavy snowfall caused by cyclone winds
Authorities said that the Nepali and Chinese sides were closed for tourism due to heavy snowfall brought by cyclone wind. Deep snowdrifts caused a helicopter crash while it was trying to rescue stranded hikers. The region around Mount Everest, visited by thousands of climbers and trekkers, has been covered in snow since Monday. A cyclone that shook India from the Bay of Bengal brought a second round of heavy snowfall to the Himalayas in this month. The authorities in Nepal have stopped trekking on many routes because of heavy snowfall and rain in lower elevations. They have also urged hikers to not venture out on their treks or continue in the Annapurna and Manaslu areas. These are home to some the highest peaks in the world. Civil Aviation Authority of Nepal spokesperson Gyanendra Bhull said that a small private helicopter which was flying to Lobuche, near Everest Base Camp, to rescue stranded hikers crashed when it attempted to land. CAAN footage showed the helicopter lying on its back after it slipped in the snow during landing. The pilot was rescued later. The trekkers' rescue status was not immediately clear. Since Tuesday, Nepal Army spokesperson Raja Ram Basnet reported that hundreds of trekkers have been guided to safety by army and police rescuers in the Manang district. He stated that about 1,500 hikers including 200 foreigners from different countries, their guides, and local trekkers lost their way because hiking trails had been buried by deep snow. Basnet said in Kathmandu that rescuers cleared snow from the trail and moved them to safer places. The weather officials predicted heavy rain and even snow for Thursday and Friday, due to Cyclone Montha's passage through India's Andhra Pradesh state. According to the Tingri County Tourism Department, the ticket sales on the Tibetan side had been suspended as of Tuesday afternoon due to icy roads and poor visibility, which made it impossible for vehicles to travel. Uncertainty remained as to whether tourists were trapped in the Everest region of Tibet. The Tibetan government's press office did not respond immediately to a comment request. The weather forecast shows that temperatures in Tingri will continue to drop below freezing levels this week. A blizzard trapped hundreds of trekkers on the Tibetan side of Everest near the eastern face in early October. The trekkers were all rescued in a massive rescue operation which lasted several days and was conducted under sub-freezing temperatures. More than 50 people have died in Nepal due to floods, landslides and heavy rains. Reporting by Gopal Singh in Kathmandu, and Ryan Woo from Beijing; editing by Stephen Coates
-
Iron ore reaches two-week high before Trump-Xi Meeting
The iron ore futures price rose on Wednesday, for the third consecutive session. It reached its highest level in two weeks. This was boosted by optimism about a possible trade agreement between two of the world's largest economies. U.S. president Donald Trump, who is expected to meet with Chinese President Xi Jinping in South Korea on Thursday for a high-level meeting, has said that he anticipates reducing U.S. duties on Chinese products as a result of Beijing's promise to limit exports fentanyl precursor chemicals. Analysts at brokerage Xinhu Futures stated in a report that the general risk sentiment has improved due to a easing of U.S. China trade tension. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 1.96% higher, at 804.5 Yuan ($112.94) per metric ton. This was its highest level since October 14. The benchmark December Iron Ore at the Singapore Exchange increased 1.42%, to $107.25 per ton. This is the highest price since October 14. Prices of the main steelmaking ingredient were also supported by the expectation that steel mills will restock in a hurry to meet production requirements after the end of production restrictions. A forecast for worsening air pollution forced steelmakers in certain northern regions to start implementing production controls on Monday. This included the largest steelmaking hub, Tangshan. Vale, a Brazilian miner, said that it was very optimistic about long-term demand for iron ore. Coking coal, coke and other steelmaking components, which had previously suffered a decline, have now risen by 3,5% and 1,9% respectively. Analysts at Galaxy Futures stated that the price rally was caused by authorities reiterating their commitment to cracking down on 'involution style' competition. Early in July, China promised to stop excessive price wars. This sparked hopes for a wave supply-side reforms. Coal prices rose that month. The majority of steel benchmarks at the Shanghai Futures Exchange have gained ground. Rebar gained 1%, while hot-rolled coil grew by 1.21%. Wire rod climbed 0.48%, and stainless steel gained 0.31%.
-
Outokumpu invests $45 Million in US pilot plant despite missing earnings forecast
Outokumpu, a Finnish stainless steel manufacturer, reported a third-quarter profit that was below the market's expectations on Wednesday. It also announced it would invest $45 million into establishing a pilot plant in America. In the period June-September, the adjusted earnings before taxes, depreciation, and amortization (EBITDA), as measured by the company, fell 60%, to 34 million euros. This was below the 35.7 million forecasted by analysts in a survey provided by the firm. European steelmakers are facing challenges, including a low domestic demand, high energy costs and severe pressures from imports at low prices from Asia, particularly China. The global trade tensions caused by President Donald Trump’s import tariffs are weighing on consumers' moods, slowing economic and industrial activity. In a recent statement, CEO Kati Ter Horst stated that "the underlying demand for stainless is still subdued because of low investment activity and manufacturing as well as weaker consumer confidence." Outokumpu announced that it will open a pilot plant in New Hampshire, the U.S. where it is currently the second largest producer of stainless steel, to produce critical materials without carbon, such as chromium and enriched ferrochrome. Due to the market slowdown in Europe and the seasonal slowdown in North America, the group's deliveries of stainless steel fell by 11% during the third quarter. Outokumpu stated that "Asian exports to Europe remain high in comparison to the low demand on the stainless steel market."
-
Climate Fund backs $6 Billion Jordan Water Project with its largest deal
According to its chief executive, the world's largest climate multilateral fund made its biggest financial commitment yet to build a $6 Billion water desalination plant in Jordan. The Green Climate Fund was backed ahead of COP30 in Brazil, in November. It also comes a decade after Paris Agreement which cited the fund as a major way to finance efforts against global warming. Mafalda duarte said that it would transform the country. She added that this was the "highest investment" the fund had made in a single project. In South Korea, a grant and loan of $295 million were approved by a board on Wednesday in order to attract financing from other sources such as the International Finance Corporation (IFC) and private lenders. A WORLD-WIDE DESALINATION CRAFT Jordan has the lowest water availability on earth and the desalination plant, one of the biggest in the world will serve almost half of its population. It was predicted that the situation would worsen, with temperatures rising by 4 degrees Celsius and rainfall falling by 21%, resulting in increased evaporation and droughts. Jordan's leader has described the Meridiam-SUEZ project as a priority. Jordanian officials said that the U.S. has committed $300 million as grants and $1 billion as loans to the project. Other countries from the region are also expected to contribute. Raed Abu Soud is Jordan's Minister for Water and Irrigation. He said that the project was a strategic one to desalinate and deliver 300 million cubic metres of water to all parts of Jordan every year. 24 PROJECTS are up for approval at the GCF Board meeting Senior officials involved in the project stated that the GCF funds would enable it to reduce the cost of drinking water by 10 cents per litre, and save the government $1 billion over the course of the project. He added that it would allow the IFC better terms on loans, which will result in cheaper financing for private sector. At the GCF Board meeting, 24 projects are up for discussion. The fund would be able to disburse $1.4 billion if all 24 projects were approved. GCF has accelerated its decision-making this year as part of a broader overhaul to the multilateral financial system in the world. The COP30 will explore ways to go even further. Duarte stated that while MDBs are still not doing enough in mobilising private sector capital, stakeholders need to be realistic with how much risk they will take. (Editing by Alexander Smith & Thomas Derpinghaus).
-
Spain commemorates the anniversary of the deadly Valencia Floods with a state funeral and solemn marches
Spain's King Felipe is attending a state funeral on Wednesday in Valencia, as part of several events to mark a year since the deadly floods that killed 237 people. Even as late as last week, authorities were still finding victims in the mud. The country is dealing with the worst flooding it has seen in Europe for more than 50 years. On October 29, 2024, flash floods caused from torrential rainfall washed away bridges and cars as well as people. They also flooded homes and underground parking lots. In the Valencia region, 229 people were killed and eight more in other parts in Spain. Residents plan to place 229 foil emergency blankets, representing the victims, in a Valencian square. In Benetusser (one of the most affected suburbs of Valencia), two silent marches with torch-bearing participants will be held. Tens of thousands of demonstrators in Valencia called for the resignation of conservative regional leader Carlos Mazon at a protest on Saturday. Protesters claimed that the regional government failed to alert citizens in time during an emergency. They sent a text message warning when many buildings had already been submerged. After a local reporter claimed that she had spent nearly four hours with Mazon at a meeting of emergency services, a court is now investigating his handling of the situation and whereabouts. Mazon refused to reveal the details of his lunch, or the bill for the restaurant. However, he claims he was informed throughout the day over the telephone. On Tuesday, the government approved a loan guarantee of 5 billion euros ($5.8billion) to assist businesses and homes that were affected by floods. More than 8 billion euro has been spent by the government to clean up flood-damaged areas. Heavy rains and flash floods in the area were caused by an isolated high-altitude depression, locally known as a DANA. This is a weather system that can be highly destructive when warm and cold air combine to create powerful rain clouds. Scientists believe that climate change is causing this phenomenon to occur more often.
-
OMV's profit forecast for the third quarter is topped by fuels and chemicals
OMV, Austria's oil, gas, and chemicals group, beat expectations for the third quarter profit on Wednesday. It benefited from higher contributions by its fuels, chemicals, and segment. According to the company, analysts had expected 1,17 billion euros. Clean operating results are based on current costs of supply and exclude one-off items, short-term gains or losses and energy inventory holdings. OMV's chemical division is considered its growth engine, as it transitions from polluting fuels to cleaner alternatives. It produces chemicals that are used in car parts, gas and water pipes and medical syringes. The division achieved a third-quarter operating profit of 222 millions euros, an increase of 64% over last year. The decline in sales revenue from continuing operations was primarily due to lower volumes of contracts with customers, particularly in the energy sector. The company reported that the energy production fell by 8% mainly due to the divestment from SapuraOMV. OMV reported earlier this month that it had recorded lower energy prices for the third quarter 2025. The average price of natural gas fell by 6% compared to the previous quarter. Reporting by Maria Rugamer, Editing by Harikrishnan Nair. $1 = 0.8575 Euros
Hess shareholders accept $53 billion sale to Chevron
Hess shareholders on Tuesday approved the proposed $53 billion merger with Chevron that paves the way for the No. 2 U.S. oil company to acquire a prize asset and a foothold in competing Exxon Mobil's. enormous Guyana discoveries.
The approval clears one hurdle, but the deal still needs. regulatory approval and needs to deal with a lengthy arbitration battle. with Exxon and CNOOC, Hess' partners in Guyana.
Regulative approval could come next month, stated Frederic. Boucher, risk arbitrage analyst at Susquehanna Financial Group,. based on the time the Federal Trade Commission (FTC) required to. approve Exxon's acquisition of Pioneer Natural Resources earlier. this month.
However the most crucial step to approve the offer, he stated,. is a resolution of the dispute submitted by Exxon and CNOOC. asserting they have a right of very first refusal to any sale of. Hess's Guyana possessions.
A bulk of Hess's 308 million shares outstanding ballot. in favor of the offer was needed for approval. Results were. initial and Hess did not instantly offer the vote tally.
The vote is a win for CEO John Hess, who put his track record. and the future of a company established by his dad on the line.
The result puts to rest claims by some shareholders who. wanted extra compensation for the hold-up in closing the. sale. Exxon's arbitration could press the offer's closing into. 2025.
We are extremely happy that the majority of our stockholders. recognize the engaging value of this tactical deal and. look forward to the successful conclusion of our merger with. Chevron, CEO Hess said.
Hess and Chevron shares gained on the results. Hess increased a. portion to $152.05 and Chevron climbed less than 1% to $159.04.
Assuming Chevron wins the arbitration from Exxon or discovers a. settlement, the deal is now going to occur, said Mark. Kelly, an expert with financial firm MKP Advisors.
The yes vote has big implications for both business. Getting the rewarding oilfields in Guyana from Hess would. offer Chevron with a means to alleviate the geopolitical threats. connected to the TengizChevroil job in Kazakhstan, which mainly. carries its oil through Russia to a port on the Black Sea.
In addition, this acquisition could counterbalance the expense. overruns experienced at Chevron's Australian liquefied natural. gas (LNG) jobs, which have been affected by labor and. functional problems.
Obtaining Hess's Guyana holdings would fill out Chevron's. oil and gas reserves and supply a brand-new avenue for production. growth, beyond their existing operations in the U.S. and Central. Asia, said Allen Good, an expert with Morningstar financial investment. company.
Hess investors will own nearly 15% of the much bigger. Chevron and get access to its dividend, which is four times. higher than Hess'.
The investor sign-off also strengthens the business'. hand in any negotiations with Exxon. While Exxon has expressed. no interest in bidding for Hess as a whole, it has actually not eliminated. a potential bid for Hess' assets in Guyana.
It's excellent Chevron cleared this obstacle provided the rumblings. over the unpredictability of the Guyana arbitration, Good said. However, I do not believe it will affect the outcome of Exxon's. claim.
Chevron prepares for moving the FTC regulative procedure. towards its conclusion in the coming weeks, a spokesperson stated.
We are confident our position on the preemption right will. be verified in arbitration, the business stated.
Exxon operates all production in Guyana with a 45% stake in. the giant Stabroek Block. CNOOC owns another 25% of the. joint-venture. Both claim a right of first rejection on any Hess. sale of its 30% stake.
Proxy firm Institutional Investor Solutions had. recommended shareholders vote to stay away and prompted Hess to use. a reward to shareholders since of the offer delay.
John Hess spent the last month lobbying big shareholders. to win support for the merger. He had personally gone to or. called more than 30 companies, according to individuals knowledgeable about the. matter.
(source: Reuters)