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Orange Polska announces a worse-than expected Q3 profit decrease
Orange Polska reported a 10% worse than expected decline in its net profit for the third quarter due to increased finance costs. However, it confirmed its guidance for core earnings and revenue. The third quarter net profit was 228 million Zlotys (63 million dollars). The analysts polled expected a net profit of 250 million zlotys. The Polish division of France's Orange attributed the drop in profit to increased net finance costs after it purchased a 5G licence. Why it's important Orange Polska, with a market capitalisation of 12.20 billion zlotys (approximately $9.04 billion zlotys), is the biggest listed telecoms in Poland. By the Numbers The third-quarter revenue increased 9.3% on an annual basis to 3,33 billion zlotys. Core earnings (EBITDAaL), however, grew by 2.9% to $899 million, due to cost control and strong direct margins. The company added 108,000 new mobile customers during the quarter. KEY QUOTES "We are happy that customer net additions have exceeded 100,000 for the first few years, particularly in mobile (...)." In a press statement, CEO Liudmila Climac said. She added, "The results achieved in the last nine-months give us high confidence to reach this year's guidelines." (Reporting and editing by Matt Scuffham; Marta Maciag)
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Gold continues to fall as investors take profits before US inflation data
Investors booked profits before the U.S. key inflation data that is due this week, which will determine whether gold prices are still rising or falling. As of 11:19 am, spot gold was down by 2%, at $4,038.89 an ounce. After reaching as high as $4,161.17 in earlier sessions, ET (1519 GMT) was the next session. U.S. Gold Futures for December Delivery fell 1.3%, to $4055.40 an ounce. Gold prices are at multiple record highs this year and have gained 54%. This is due to geopolitical tensions and economic uncertainty as well as expectations of U.S. interest rate cuts. Prices dropped 5.3% on the Tuesday after hitting a record-high of $4,381.21 during the previous session. David Meger is the director of metals at High Ridge Futures. The 21-day moving median at $4,005 is a technical support for gold. The core inflation rate is expected to remain at 3.1% for September, according to Friday's U.S. Consumer Price Index report. This report was delayed because of the U.S. Government shutdown. Investors are almost fully pricing in a rate cut of 25 basis points at the Federal Reserve meeting next week. In low-interest-rate environments, gold, which is a non-yielding investment, tends benefit. In the meantime, Russia announced on Wednesday that they were still preparing for an upcoming summit between U.S. president Donald Trump and Russian President Vladimir Putin. Investors also await clarity regarding the potential meeting next week between Trump and Chinese president Xi Jinping. "We maintain a bullish outlook for gold and silver into 2026, and following a much-needed correction/consolidation, traders will likely pause for thought before concluding the developments that drove the historic rallies this year has not gone away," said Ole Hansen, head of commodity strategy at Saxo Bank, in a note. Silver spot fell 1.3%, to $48.12 an ounce. It fell 7.1% on Monday. Palladium, which is also known as platinum, rose by 0.1% to $1,409.45, while platinum fell 0.3%.
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EU to set price controls on new carbon market
In a letter to the European Union's climate chief, it was revealed that the EU is working on measures to control the prices of its new carbon market. This is in response to concerns from governments about the possibility that the scheme to reduce emissions could lead to higher fuel costs. Policy is to be implemented in 2027 to charge for the planet-heating emission produced by transport and heating fuels. This will encourage people to switch to cleaner heating systems and electric vehicles. The revenue from the scheme will be used to help people pay their bills, subvention electric cars and make energy-saving renovations in homes. Some governments are concerned that the measure could stoke citizen opposition to climate policies if perceived as a way to increase their bills. This year, a group of 19 countries, including the Czech Republic and Germany, asked Brussels to implement stricter price controls. In a response to the requests, EU climate commissioner Wopke H. Hoekstra wrote: "I share your concerns about the uncertainty of future price levels in ETS2 and the price volatility therein. The new EU Carbon Market is designed to release extra permits into the market if the price of CO2 reaches 45 euros. This will help lower prices. Proposal to DOUBLE the number of permits released Hoekstra stated that the Commission would propose to double the number of permits issued in this scenario, potentially reaching up to 80 millions per year in the years 2027-2028-2029. The letter, dated 21 October, stated that "this will more effectively address unwarranted prices rises and improve the market confidence, which are key for planning decarbonisation investment." The Commission will propose to launch carbon permits auctions in 2026 to give governments funds to jump-start investments that help people switch to cleaner technologies. The Czech Prime Minister Petr Fiala welcomed the plans on Wednesday, but he said that he wished Brussels would go further and delay launching the carbon market. Leaders of EU countries will meet on Thursday to discuss the bloc's 2040 climate goal. They will focus on the funding and policies needed to help businesses and citizens achieve the target. (Reporting and editing by Ed Osmond; Additional reporting by Jan Lopatka & Jason Hovet)
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Belgium considers energy limits to power data centres that are consuming a lot of electricity as AI demand increases
The Belgian grid operator said it could limit the amount of electricity allocated to data centres in order to protect other industrial users. This was due to a surge in energy-intensive AI facilities. According to the reforms proposed by Elia, data centers would be put in a different category, allowing grid capacity to specifically be allocated for them, within a certain limit. The operator added that this would allow for flexible connections in cases where grid congestion may limit access. As major tech companies spend billions on AI and data centres, nations around the globe scramble to meet the sudden energy demand required to operate the buildings. This is expected to push power consumption to new records over the next two-years. Elia reported that in Belgium, data centre requests have increased nine-fold from 2022. The capacity reserved for 2034 is already more than twice the 8 terawatt hours envisioned by national grid development plans. The report said that "such volumes were not expected during the development of various grid development scenarios in Belgium's electric network," and stressed the need to stop speculative development which is unlikely to materialise by blocking grid capacity. Mathieu Bhet, Minister of Energy in France, told the Parliament earlier this week that the federal grid development plan 2028-2038 will address the evolution of data centres consumption. He said Tuesday that he would pay special attention to the issue during the approval of the plan. Google, the U.S. technology giant, plans to invest $5.80 billion in Belgium to expand its data centres campuses and support its AI strategies. (Reporting and editing by MuvijaM; Alban Kacher)
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Netflix and stocks are mostly down as gold prices continue to fall
Gold prices fell again on Wednesday. This comes a day after gold spot experienced its biggest single-day decline in five years. Major stock indexes were mostly down, with Netflix shares falling after disappointing outlook. Investors booked profits, and gold, which was one of the best performing trades for the year, fell. The price of gold is still on track to have its best year since 1979's oil crisis. It has risen more than 50% this year. Last week, spot gold fell 1.73% to $4,052.69 per ounce. Netflix shares were down by more than 9% at the opening of trading. Wall Street's major three indexes were also lower. Investors will be waiting for Tesla's results, which are expected to kick-off the earnings season of the Magnificent 7 group of megacap stock. Tesla shares fell about 1%. We've been seeing a lot more volatility on the markets in recent months. "We've seen a lot of volatility in the markets lately. He said, "We're in the earnings season and that means uncertainty." Tariff issues still exist. The Middle East war is still a major issue. "We try to focus on the companies themselves and their performance." Russia said Wednesday that it is still preparing for the potential summit between U.S. president Donald Trump and Russian President Vladimir Putin. The Dow Jones Industrial Average dropped 118.69, or 0.25 percent, to 46.806.05, while the S&P 500 declined 22.73, or 0.33 percent, to 6,713.39, and the Nasdaq Composite was down 165.07, or 0.70% to 22,791.98. The MSCI index of global stocks fell by 2.63 points or 0.26% to 922.22. The pan-European STOXX 600 rose by 0.07%. Investors increased their bets that the Bank of England would cut interest rates after data revealed unexpectedly stable inflation. The blue-chip FTSE 100 rose 1.1%. The yield on benchmark U.S. 10-year notes increased after two consecutive sessions of falling, but the market remained range bound as the U.S. Government shutdown entered its 22nd day without a resolution in sight. The yield on the benchmark U.S. 10 year notes increased 1.1 basis points from late Tuesday to 3.974%. Investors have priced in an almost full 25-basis point rate cut. Due to the shutdown, policymakers may be left blind during the meeting. This is not ideal as they are divided on which risks should receive the most attention. Trump rejected a Tuesday request from top Democratic lawmakers that they meet until the U.S. shutdown, which has been ongoing for three weeks, ends. The dollar was barely changed. According to sources, the new prime minister Sanae Takaichi has been preparing a stimulus package that will likely exceed last year's $192.19 billion (13.9 trillion yen) in order to help families combat inflation. Next week, the Bank of Japan will also meet. Like the ECB of Europe, it is expected that the central bank will maintain its current rate. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) fell by 0.01%, while the euro rose 0.01%, reaching $1.16. The dollar gained 0.01% against the yen to reach 151.94. The price of oil rose today, with U.S. Crude up 2.45% to $58.64 per barrel and Brent up 2.15% at $62.64 a barrel. (Reporting and editing by Mark Potter and Peter Graff; Additional reporting from Marc Jones in London.
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Oil prices remain low, and so do the deals for upstream oil and natural gas.
Enverus, an analytics firm, said that the persistently low crude oil prices in the US upstream oil sector impacted merger and acquisition activity during the third quarter. Dealmaking has fallen for the third consecutive quarter, as U.S. Crude Futures have averaged around $65, which is the price that producers claim they need to drill profitably. U.S. crude oil futures averaged $75 during the same quarter of last year. Deals worth $9.7 billion were disclosed in the quarter ended September 30, Enverus said, marking a 28% drop quarter-over-quarter. The decline in M&A activity comes after a series blockbuster takeovers of oil and gas giants in recent years. These deals culminated in a record deal worth $192 billion by 2023. Andrew Dittmar is the principal analyst of Enverus Intelligence. He added that "most remaining shale M&A deals need to be priced higher in order for public companies to pay for undeveloped locations." (Reporting and editing by Nathan Crooks, Barbara Lewis and Georgina McCartney from Houston)
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Vice President: Gabon does not plan debt restructuring but is focused on growth.
Vice President of Gabon said that the country is not contemplating a debt restructuring, or reprofiling. Instead, it is recalculating its GDP to make the debt-to-GDP more favorable. Alexandre Barro Chambrier, vice president of Gabon, said that Gabon also audits internal debts. He made this statement at the Financial Times Africa Summit held in London. When asked about possible debt restructuring or reprofiling, Chambrier replied: "We're not at that point at this time." In January, Gabon's World Bank disbursements ceased due to mounting arrears. It was also experiencing a severe liquidity crunch that left it increasingly dependent on regional capital markets for financing. Chambrier stated that "there is no need to be afraid" about the debt and borrowing of the country, and that Gabon was finalising an economic plan to ensure that all the debts contributed to the long-term development and growth of the country. He said to a panel in the early morning that Gabon is working to increase oil production and can repay. In his comments, he said that rebasing gross domestic product would better capture both the informal sector and "natural capital" of the country. This would result in a higher GDP figure than what the World Bank calculated, which was just under 21 billion dollars in 2024. He said that the rebasing will likely be finished before year's end and would make the ratio of debt to GDP more favorable. Auditing internal debt will ensure it is "clean or right". "This is a part of the rule-of-law in a nation. You really need to assess whether things are done well and that governance is good. Resources are used efficiently. He said, "There is no evaporation." He said that Gabon has regular contacts with the International Monetary Fund but is more interested in having "room to manoeuvre" for investment than securing a loan programme from the Fund. Reporting by Libby George Editing Peter Graff
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TSX rebounds with energy and tech stocks leading gains
Canada's main index of stocks rebounded Wednesday after the previous session saw the largest single-day decline since April. Energy and technology shares were the leading upward movement. 10:16 am ET (1416 GMT), Toronto's S&P/TSX composite index was up 0.15% at 29932.49 points. The S&P/TSX Composite Index in Toronto was up 0.15% to 29932.49 at 1416 GMT. Energy sector was the best performer with a 1% gain, as oil prices rose for a second day in a row, about 2%. Material stocks remained stable despite the volatility on precious metals markets. Gold fell further after having fallen more than 5% the previous session. The fact that inflation is increasing while gold prices are falling is counterintuitive. Shiraz Ahmed is the founder and CEO of Sartorial Wealth Inc. He said that he attributes a large part of gold's price movement to profit-taking because of its incredible rise. He said that historically, an increase in price is viewed as a "bubble", so the recent drop in precious metals was viewed positively. Gold is still on track to have its best year since 1979, despite the volatility. Canada's benchmark stock index, which is heavily weighted towards commodity-related stocks has been riding this gold wave to a gain of 20.9% so far this season. BlackBerry, the cybersecurity company, surged 7%. Industrials and real estate also contributed to the increase, with increases of 0.7% and 0.5% respectively. Consumer staples and discretionary products bucked this trend by declining 0.3% each. The market participants are now awaiting the release of the U.S. Consumer Price Index on Friday. This is a key inflation indicator which could give insight into the Federal Reserve's monetary policy trajectory. Also, the Canadian retail sales numbers, which are due to be released on Thursday, should provide a good indication of consumer spending habits. (Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore)
Petrobras' quote for Galp's Namibia prospect to consist of a minimum of one partner, sources say
Brazil's Petrobras will include a minimum of one partner in its quote for a. 40% stake in Galp Energia's Mopane oil prospect in. Namibia, 2 sources with knowledge of the matter told Reuters.
Recently, Petrobras' director of exploration and. production, Sylvia dos Anjos, informed Reuters that the state-run. company had actually made a non-binding offer for a stake that would make it. operator of the Mopane block off Namibia's coast. She did not. detail just how much of the 40% Petrobras was looking for.
The firm will not seek the complete 40% stake alone, the sources. said on condition of anonymity, among whom worried that the. bidding would not impact the company's payout of dividends.
It's a competitive process in an in-demand area, with. potential to be confirmed. The natural thing in a bid like that. is to dilute the threat with partners, said among the sources,. who did not state if Petrobras was looking for one partner or more, or. if it had actually currently found one.
Petrobras did not right away reply to an ask for. remark.
Petrobras' bid comes as it seeks to improve its reserves,. however has faced obstacles in acquiring environmental licenses to. move forward with exploration in Brazil.
The southwest African nation Namibia has actually come into the. spotlight as a brand-new oil and gas exploration hotspot following. a number of major discoveries recently along its coast.
Galp wishes to sell half of its 80% stake in the field, where. estimates show a minimum of 10 billion barrels of oil equivalent,. according to the firm.
Presuming an oil healing aspect of 25% of the block's oil. reserves, the 40% stake in Mopane might cost around $4 billion,. BTG Pactual analysts approximated in a note last week, warning that. the financial investment, in addition to possible purchases of two refineries. in Brazil, might raise threats for dividend payments by Petrobras.
(source: Reuters)