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Four people killed in collapse of six-storey central Madrid building
Local authorities reported on Wednesday that the Spanish emergency services had recovered four bodies from the rubble beneath a six-storey collapsed building in central Madrid, which was being renovated into a new hotel. Jose Luis Almeida, the Mayor of Madrid, wrote in X: "It's with great sadness that we confirm the Madrid firefighters recovered the bodies" of those who were missing following the collapse. Three men, aged 30-50, from Ecuador, Mali, and Guinea-Conakry, were employed as construction workers at the site, along with a woman of 30, who was the architect for the renovation project. The remains of these two men were discovered early Wednesday morning, almost 15 hours after the interior structure of the building collapsed, leaving only the facade intact. Police and firefighters used drones and scenter dogs in the search and rescue operation. Three other construction workers suffered injuries. Mikhail, a construction worker from outside the building, was pumping in concrete to the lower floors when it collapsed. He claimed to have seen a huge cloud of dust, and sprinted off as soon as he saw it. "I ran first, and I didn't give a damn about anything else." He told reporters that he would save his life first, and then, if possible, help others. According to Madrid's online register of building under construction, the property was constructed in 1965. The property was subjected to two technical inspections, in 2012 and 2022, and classified as "unfavourable", due to the "general condition of the exterior, facade, partition walls and roof, roof terraces, plumbing and sewage systems". Rehbilita's website states that the former office building in a popular area of Madrid near the royal palace and opera house is being transformed into a 4-star hotel. Rehbilita didn't respond to an inquiry for comment. The property is owned by the Saudi fund RSR. RSR is a real-estate investor based in Saudi Arabia that specializes in high-end hotel and tourist apartment properties in Spain and Portugal. RSR purchased it in 2022 for 24.5 millions euros (approximately $28.5 million). The renovation was approved by the municipal authorities in December of 2024 and expected to take two years. Reporting by David Latona, Editing by Hugh Lawson. $1 = 0.8613 euro
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Gold reaches $4,000 for the first time during record-breaking run
Investors piled into gold to protect themselves from geopolitical unrest and bet on further U.S. rate cuts. Spot gold rose 1.2%, to $4.032.46 an ounce at 0653 GMT. U.S. Gold Futures for December Delivery climbed 1.3%, to $4.054.80 an ounce. Gold is traditionally seen as a safe haven of value in times of uncertainty. Spot gold, one of the most successful assets in 2025, is up by 53% so far this year after rising by 27% last year. The rally was driven by several factors including the expectation of interest rate reductions, political and economic uncertainties, central bank purchases, and inflows to gold exchange-traded fund. The Fed is likely to continue lowering rates, so the market will be looking for the next round number of 5,000. There will be bumps along the way, such as a lasting ceasefire in the Middle East or Ukraine, but the fundamental drivers for the trade, massive debt and increasing reserves, diversification of reserve assets, and a lower dollar, are unlikely to alter in the medium-term. The U.S. shutdown of the government entered its seventh day Tuesday, adding to the uncertainty. The shutdown has delayed the release of important economic indicators for the world's largest economy. This forces investors to rely upon secondary, nongovernment data in order to determine the timing and magnitude of Fed rate reductions. Investors now expect a 25 basis-point reduction at the Fed's meeting in this month. An additional 25 bp is expected in December. Tim Waterer, KCM Trade's Chief Market Analyst, said that "rising levels of uncertainty tend to fuel gains" in gold prices. The market dynamics of the lower U.S. rates of interest and the government shutdown continue to work in gold's favor. The temptation to sell at the $4,000 level is a short-term danger. Analysts say that a "fear of losing out" also drives the rally. The political turmoil in France, Japan and other countries has also increased demand for safe-haven gold. Goldman Sachs, UBS and other analysts expect that central bank purchases, strong inflows of exchange-traded fund assets backed by gold and lower U.S. rates will support the gold price in 2026. With the $4,000 barrier breached, new technical horizons are now open. Next resistance levels can be found around $4,050 and $4,100. The former resistance zone at $3,900 is now the first support area, said Alexander Zumpfe. Other precious metals markets saw spot silver rise 1.6%, to $48.57 an ounce. Platinum rose 1.6%, to $1644.40, and palladium increased 3.1%, to $1378.86.
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Noveon, a US-based company, and Australia's Lynas partner to supply rare earth magnets
The two companies announced on Wednesday that Australia's Lynas Rare Earths and the U.S. manufacturer Noveon Magnetics have partnered to supply rare-earth permanent magnets in the U.S. to the defence and commercial sectors. The agreement includes the supply of both heavy and light rare earth materials, as well as the production and distribution of finished magnets for end-users in the defense, automotive and industry sectors. In a joint press release, Noveon CEO Scott Dunn stated that "this partnership delivers what both the U.S. market and government most need: capacity, certainty, and speed." The companies also plan to finalise an agreement definitive and work closely together with the U.S. Government and customers. The companies didn't disclose any financial details about the deal. Washington has been pressing to secure vital minerals and reduce dependence on China, who produces 90% of rare earth magnets in the world. Lynas, the largest rare earth producer in the world outside of China, and its CEO Amanda Lacaze have said that the deal would provide U.S. magnet manufacturers with "a secure and traceable" supply chain.
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Sources say that 11 paramilitary soldiers from Pakistan were killed in an ambush by Islamist militants
Sources claim that Islamist militants ambushed and killed nine paramilitary troops and two officers in an attack on a Pakistani convoy Wednesday near the Afghan border. The Pakistani Taliban claimed responsibility. Five Pakistani security officials said that roadside bombs were used to attack the convoy prior to a large group of militants launching a gun assault in the Kurram district, located in the northwestern part of the country. The Pakistani Taliban told a reporter that their fighters had attacked the convoy. The Army's Public Relations wing didn't immediately respond to an inquiry for comment. Tehreek-eTaliban Pakistan has intensified its attacks against Pakistani security forces in recent months. The group wants to overthrow Pakistan's government and replace it by their brand of hardline Islamic governance. Islamabad claims that militants are using Afghanistan as a training ground and to plan attacks on Pakistan. Kabul, however, denies this claim. (Reporting and writing by Mushtaq Al in Peshawar, Asif Shahzad and Surbhi Misra; editing by YPrajesh and Clarence Fernandez).
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Copper producer Aurubis predicts steady earnings in fiscal 2025/26
In a press release published Wednesday ahead of the capital markets day, Europe's biggest copper producer Aurubis announced its earnings guidance for 2025/26. It was largely in line with the guidance it provided for the prior year. Hamburg-based company, said that it expects to achieve operating earnings before tax (EBT) between 300 million and 400 million euros (348 million to 465 million dollars) for the financial year which began on October 1. The company's original guidance for the previous year was also met. Aurubis is due to release its annual results in December. Since then, the company has narrowed this guidance range to between 330 and 370 millions euros. According to Aurubis, analysts have predicted an operating EBT in the range of 358 millions euros for fiscal 2024/25. The following year's EBT is expected to be 375 millions euros. Investor event to be held on Wednesday, where the company will give an update about its new recycling smelter located in Richmond County, Georgia. The smelter was launched in September 2024. It is estimated that it will take until fiscal 2026/27 for full production to reach 70,000 metric tonnes of blister copper each year. Aurubis targets a return of 15% on its capital employed in the medium-term, with a maximum leverage ratio of 3.0, and a equity ratio above 40%.
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New Zealand shares near record highs after bumper rate cuts
New Zealand shares closed Wednesday at a new record high after the central banks delivered a rate cut that was larger than expected. Australian stocks ended slightly lower due to losses in consumer discretionary, technology and other stocks. The S&P/NZX 50 index for New Zealand closed the session at its highest level of 13,568.48, up 0.3%. The benchmark index fell as much as 0.2% when it opened, but quickly reversed its course after the Reserve Bank cut its main cash rate by 50 basis points. Policymakers expressed concern about the fragile state of the economy, but left the door wide open to further easing. According to Jeremy Sullivan of Hamilton Hindin Greene, an investment adviser in Christchurch, New Zealand, the decision was against 15 out of 26 economists who were surveyed and had predicted a reduction by a quarter point. This is the most divided decision on interest rates since COVID-19. We have a market that is yield sensitive with a lot of high-dividend-paying firms. A move in interest rates relative to dividends our companies can pay is putting upward pressure the index, said Sullivan. The benchmark index was led by gains in utilities and industrials. Meridian Energy shares rose by nearly 3% while NZX, the operator of bourses, gained 2.5%. The NZX shares of Australian lender Westpac Banking Group posted a record closing high. The S&P/ASX 200 Index in Australia closed at 8,947.60, a loss of 9.2 points. In their third session of losses, consumer discretionary stocks that are sensitive to economic cycles dropped by 1.5%. Wesfarmers, the conglomerate, fell to a new low in a month while JB Hi-Fi, an electronics retailer dropped to its lowest level in three weeks. The Australian benchmark index continued to decline as local technology stocks fell to a new low, in line with the overnight losses on Wall Street. Sector leaders WiseTech Global (-0.4%) and Xero (-1.7%) both lost ground. The heavily weighted miners broke the trend and rose 0.2%. Rio Tinto, South32 and other index constituents advanced by 0.9% and 2.7% respectively.
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Gold and stocks drop on political anxiety
The dollar strengthened on Wednesday, as investors dealt with the political turmoil in France and Japan. Meanwhile, a prolonged U.S. shutdown pushed gold spot prices above $4,000 an ounce for the very first time. Gold prices have been driven higher by the prospect of rate cuts in the future from Federal Reserve, and demand for safe havens due to economic and politics worries. Gold spot prices rose by 1%, to $4,021.22 an ounce. This brings the gains this year above 50%. Gold is traditionally seen as a safe haven during times of uncertainty. This rally was also driven by central bank purchases, the inflows of money into gold ETFs, and a weaker dollar. Chris Weston is the head of research for Pepperstone. Thierry Wizman is a global FX & Rates Strategist at Macquarie Group. He said that gold's rally was a collective "hedge" to the potential failure of the American AI driven tech boom. "A collapse in that optimistic 'vision,' could trigger an inflationary solution for the world's overhang of sovereign debt rather than a product-based resolution." MSCI's broadest Asia-Pacific share index outside Japan, which tracks Wall Street's decline, fell 0.8% in stocks. It is now a little lower than the high of 4-1/2 years it reached on Tuesday. China and South Korea closed their markets for a long weekend. Hong Kong's Hang Seng Index has fallen 1%. Japan's Nikkei Index fell 0.35% after reaching a record high in the previous session. FRENCH WORRIES IS BACK The euro was under pressure following the resignation of French Prime Minister Sebastien lecornu on Monday. This signals yet another period in France's political history. The euro fell 0.35% to $1.1617 last week, its lowest level since a month. France's president Emmanuel Macron was under increasing pressure to resign and hold a snap parliamentary elections. Investors are worried about France's fiscal stability due to the political chaos that has engulfed the country. Five prime ministers have resigned in less than two year. The yen has also fallen this week due to political shifts. It is now at its lowest level in eight months as investors wait for fiscal policy signals from Prime Minister-in-waiting Sanae Takayichi. Last time, it was 152.40 dollars per yen. The victory of Takaichi, the fiscal dove, over the weekend sparked concerns about the outlook for fiscal and monetary policies. Traders quickly cut their bets against another hike in this year. The yen has fallen over 3% in the past week. This is on track to be the steepest weekly drop since last year. This raises fears of a possible intervention by Japanese authorities. Hirofumi Suzuki, chief currency strategist of SMBC, stated that if the yen headed towards 160 in one to two weeks "FX interventions by the Japanese Government would be viewed more likely." He said that he expected an impact to be felt on U.S.-Japan's trade relations in the medium and long term. The New Zealand dollar fell nearly 1% following the central bank's 50 basis point cut to its benchmark rate and the fact that it left the door open to further easing. This suggests policymakers are worried about the fragile state of the economy. Investors have relied on independent secondary data and remarks by monetary policymakers to determine the likelihood of the Fed implementing its second rate reduction this year at the policy meeting scheduled for this month. The traders are estimating a 45 basis point easing in this year. The dollar index (which measures the U.S. dollar against six other currencies) hit its highest level in August. However, sentiment was still gloomy as the shutdown entered its eighth day. Investors brushed aside fears of oversupply on Wednesday, after digesting a decision by OPEC+ earlier to limit production increases in the coming month. Brent crude futures rose 0.7% to $65.91 per barrel. U.S. West Texas Intermediate Crude 0.79% to $60.22 (Reporting and editing by Ankur Banerjee, Sam Holmes).
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MORNING BID - EUROPE - Gold at $4K. Be very, very afraid
Ankur Banerjee gives us a look at what the future holds for European and global markets The markets are battling political turmoil in Japan, France, and the U.S. This is pushing gold to record highs, with the metal being used as a safe haven by investors. Spot gold is in a flurry - to say it has been on fire would be an understatement. The eye-watering 50 percent gain this year comes on top of the 27% increase in 2024, and 13% in 2023. Investors' appetite for gold is still insatiable. According to World Gold Council data, global inflows into gold-related ETFs have reached $64 billion for the year. September saw a record-breaking $17.3 billion. Gold has been touted as the preferred hedge due to the expectation that the Federal Reserve will cut rates in the short term, concerns over geopolitical uncertainties and economic uncertainty along with the fear of an AI bubble. This is a sign that you should be concerned. Investors are captivated by the French political scene, where President Emmanuel Macron is under increasing pressure to resign and hold a snap parliamentary elections. France experienced further political turmoil this week, after its fifth Prime Minister in less than two-years resigned. The markets have been frightened, as the risk premium for French government bond rates is near a 9-month high. Even though the U.S. government shutdown is now in its eighth day, the euro has suffered and this has given some relief to the dollar. The Japanese yen continued to fall, extending its losses of over 3% within just three sessions. The Japanese yen has returned to its mid-February level, hovering at 152.50 dollars per yen as whispered-about intervention risks are emerging. Market reaction to Sanae Takaichi’s victory was explosive. The yen collapsed, Nikkei reached record highs, and long-end bonds yields surged due to concerns about fiscal health and declining bets on another rate increase this year. Yet, it is difficult to predict the direction of fiscal policy in the short term. Investors hope that her stance is softer this year than it was last year. The following are key developments that may influence the markets on Wednesday. German Industrial Data for August
Taiwan private refiners are willing to stop purchasing Russian naphtha
Taiwan's Economy Minister said on Wednesday, that private refiners would be willing to stop purchasing Russian naphtha if the EU asked them. This comes after a group non-governmental organizations criticized the island's continuing business with Russia.
Taiwan, along with the United States, major Western allies, and other countries, put broad sanctions against Russia in 2022 after its invasion of Ukraine, but it did not ban explicitly imports, which are a major source of hard currency for Russia.
A group of NGOs, including the Centre for Research on Energy and Clean Air(CREA), criticised Taiwan for its continued imports Russian naphtha last week. Taiwan's state-owned companies stopped importing Russian crude oil in 2023. However, private firms are still allowed to do so.
Kung Ming Hsin, the Economy Minister, said that his ministry has spoken to Formosa Petrochemical about its continued purchase of Russian naphtha and to the European Union for their opinions.
Kung stated that "we will respect and adhere to EU and G7 standards." According to what I have heard, the EU may decide next year not to make any more purchases.
When asked if Taiwan would completely stop buying naphtha from Russia, he replied, "We can only talk about this with our own private companies and they're willing to comply."
If the EU tells them next year that they can't buy anything, then they won't.
K.Y. Lin, spokesperson for Formosa. Lin refused to comment on the government's guidance.
The company says that Russian naphtha is the cheapest feedstock in a period when petrochemical producers are suffering losses. However, continued imports have drawn international scrutiny.
We simply want to be able to buy at competitive prices. Lin said last week that we buy everywhere. "Russian naphtha, for example, is cheaper than Middle Eastern, Indian, or Middle Eastern naphtha."
Formosa is Asia's largest importer and buyer of the petrochemical raw material naphtha. It purchases its supplies via open market tenders.
Lin said: "We buy naphtha via open tenders, which means we don't buy from Russia. We go with the lowest price on the open market. Russian naphtha is competitive."
He said that "for October delivery we didn't buy anything from Russia because there was no offer."
Data from shiptracker Kpler shows that Taiwan imported 75,000 barrels of Russian naphtha per day so far this season, up from the 71,000 barrels per days in 2024. (Reporting from Jeanny Kao in Taipei and Ben Blanchard, Mohi in New Delhi. Editing by Kim Coghill.)
(source: Reuters)