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Stocks surge on positive earnings; sanctions against Russia boost oil
The global stock market got a boost Thursday thanks to a series of positive earnings reports that helped offset some of the gloom in Wall Street due to a lacklustre performance by tech megacaps. Oil prices also rose following U.S. sanction against Russia. Oil prices rose 5% following Washington's sanctions against major Russian companies Rosneft, and Lukoil for the Ukraine conflict. The STOXX 600 index rose 0.3% for the day, as positive earnings helped to boost the domestic indices. The MSCI All-World Index, however, fell 0.1% and is now heading towards its third consecutive day of decline. Chinese stocks recovered from a drop of 1.1% to close at 0.3%. Sources said that the White House is considering a plan of reducing software exports to China as a retaliation to Beijing's recent round of export restrictions on rare earths. Investors are on the defensive as Trump's Asia trip (next Monday) is causing geopolitical tensions, according to Charu Chanana of Saxo Bank, Singapore. Positive Earnings Surprises As earnings season begins, global equity markets are beginning to ease off their record highs. Although there have been some disappointing results or outlooks for megacaps, the majority of companies have so far surpassed analysts' expectations. Futures for the S&P 500 index and Nasdaq lost 0.1% of their gains, reversing previous gains. Tesla, the first company of the Magnificent Seven to announce earnings, saw its shares drop around 3% on Thursday in premarket trade after it missed profit expectations despite record revenue for the third quarter. There was still plenty of tech to be excited about. Shares of IonQ Computing, Rigetti Computing, and D-Wave Quantum jumped more than 20% after a report in the Wall Street Journal stating that the U.S. Government is in negotiations with several quantum-computing firms to exchange stakes for federal funding. After Donald Trump imposed sanctions on Ukraine, oil rose up to 5.5% and reached a two-week-high of $66.04 per barrel. The EU approved the 19th set of sanctions against Moscow, which included a ban on Russian gas imports. Last week, Britain imposed sanctions on Rosneft and Lukoil. DO NOT UNDERESTIMATE THE MAGIC OF RATE CUTS Investors' firm belief that the Federal Reserve will soon be on a rate-cutting frenzy helps to ease some of the anxiety over geopolitical tensions and trade conflicts. The markets show that traders expect U.S. interest rates to fall from 4% now to 3% in June. "Never underestimate a Fed which cuts rates, and also the magic word: ending QT," IG Chief Market Analyst Chris Beauchamp, referring the central bank's programme of quantitative tightening, in which it reduces its holdings of Government Bonds to tighten up credit conditions. The dollar index which compares the U.S. dollar to six other currencies, rose 0.1% last week. It has been steadily rising since August when it hit a three-and-a half year low. Investors are more confident that the Fed will protect the economy. Gold, on its way to its largest weekly decline since May, rose 0.5% in the last 24 hours at $4,114 per ounce. Overnight, the price briefly approached $4,000 as investors took profits before this week's U.S. inflation report.
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Russia's Nornickel maintains 2025 nickel production forecast
Nornickel (Russia), one of the largest nickel producers in the world and the biggest palladium producer, maintained on Thursday its nickel production forecast for 2025, which is 196,000-204,000 tons. Nornickel reported that nickel production rose 18% in the third quarter compared to the previous three month period, when the company reduced shipments from its Dudinka Port in the Arctic because of seasonal flooding. Nornickel explained that the increase in raw material processing was due to the higher volume of materials processed during second quarter. The company also said that palladium production fell 6% to 617,00 ounces in the third quarter. This was due to a halt in navigation at Dudinka Port because palladium is a metal with a longer cycle of production. The company blamed the decline of nickel and palladium in the first nine month of the year of 4% and 6 % respectively on the need to upgrade Western mining equipment. Evgeniy Fedorov, Nornickel's Chief Operation Officer said that the adjustment was a result of a temporary drop in ore production due to the gradual switch to new mining equipment by Polar Division under the program for import substitution. (Reporting and writing by Anastasia Lyrchikova, editing by Andrew Osborn and Kirsten Donovan).
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Asia Diesel Spot Premiums Hit Two-Year High on Firm Fundamentals
Asia's 10ppm sulphur diesel spot premiums LSEG data on Thursday showed that oil prices surged to a 2-year high. This was boosted by a strong first-month market and a reaction from the markets to new U.S. sanctions against two Russian oil exporters. The data revealed that spot market premiums were around $2.22 per barrel. This was an increase of more than $1.60 from September 1. However, there were few deals on the window for cargoes with a 10ppm quality. Last seen at these levels was in early October of 2023. Multiple trade sources reported that the 10ppm diesel premiums are on an upward trend since early September. This is due to limited supplies in the first month, which coincide with planned refinery maintenance, and regional production problems. The traders also said that several procurement tenders held by Southeast Asia-based buyers in early October were supportive. LSEG data also showed that front-month spreads had reached a slightly higher level than a 3-month high, of almost $2 a barrel. Traders say that the 6% increase in ICE Gasoil Futures today afternoon was also a positive factor for Asian markets. The east-west spreads have widened back to a discount of slightly over $41 per metric tonne, which is a month-wide discount. (Reporting and editing by Tomasz Janovski and Harikrishnan Nair.)
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Dow exceeds losses estimates with cost-cutting and new US capacity
Chemicals company Dow reported a smaller-than-expected adjusted quarterly loss in the third quarter on Thursday, as cost cuts and higher volumes from new U.S. Gulf Coast assets helped offset weakness in global chemical prices. In premarket trading, Dow shares were up 6.5% to $23,10. The company said that it had achieved more than half its $6.5 billion planned near-term cash assistance, including $1 billion of capital expenditure cuts and an accelerated delivery of costs reduction targets by the end of 2026. Jim Fitterling, Dow's CEO, said that Dow's cost-discipline and its new polyethylene and alkoxylation facilities in the U.S. Gulf Coast have helped to lift margins in key markets. The global chemical market is still under pressure due to the weak demand, increasing production costs and stricter environmental regulations. This is especially true in Europe. Companies are forced to review their strategies and optimize their operations. Dow says that addressing regional challenges including European shutdowns will result in an adjusted core profit increase of nearly $200 millions beginning mid-2026. The company forecasts a fourth-quarter net sale of $9.4 Billion, which is below the analysts' expectation of $10.2 Billion. Fitterling reported in September that it had observed stable volumes and strong export capabilities, as well as low-cost positions, during the third quarter of the year, in the United States. He said that after a drop in prices due to uncertainty over tariffs during the second quarter, the market for polyethylene is now poised to move upwards. According to data compiled and analyzed by LSEG, the Michigan-based firm reported an adjusted loss per share of 19 cents for the quarter that ended on September 30. This was lower than analysts' estimates of a loss average of 29 cents. The company's quarterly net sales were $9.97 billion. This was below the analysts' average estimate of $10.23billion. (Reporting and editing by Tasimzahid and Krishna Chandra Eluri in Bengaluru)
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F-35s, fixing and fires: Ukraine, Gaza Wars threaten climate
Climate damage: Russia must pay! Rebuilding Gaza will increase emissions Massive gaps in military emissions data Emma Batha Researchers estimate that the first three years of the conflict generated 237 million tons of greenhouse gasses (GHG). This is equivalent to the annual emissions of Belgium Austria and Ireland combined or 120 million cars running on fossil fuels. This is pushing us into the wrong direction, at a time we need to drastically cut emissions," said Lennard de Klerk of Climate Research, the lead author of a report that tallied the war's emission, published in this month. De Klerk stated that the cost of climate damage due to the war, in which hundreds and thousands of people were killed on both sides, already exceeded $43 billion. When post-conflict rebuilding is taken into account, a separate study on the Israeli-Hamas conflict in Gaza estimated the carbon footprint of the first 15 month's war topped 32 millions tons. This is equivalent to the annual emissions from Ivory Coast. Benjamin Neimark led the research of UK and U.S. based experts. The projected reconstruction emissions were a real shock. This was a shocking revelation and it made us sit up. The groundbreaking studies will be presented at the sidelines next month's COP30 Climate Summit in Brazil. Researchers say that conflicts and climate changes create a destructive cycle. Not only do wars cause climate change but climate change also fuels conflict in fragile areas as the competition for water and other resources intensifies. WILDFIRES De Klerk was surprised that wildfires accounted for a fifth (of the war's) carbon footprint after Russia's invasion in 2022. Unrelenting shelling caused thousands of fires that ravaged farmland and forests. Some of these fires were likely made worse by landmines or unexploded ordnance scattered across the landscape. According to the report of the Initiative on GHG Accounting of War (an international research team headed by de Klerk), nearly 850,000 hectares of land were burned last year. He said that the amount of rain was more than 20 times higher than the average annual rainfall. The summer of 2024, due to climate changes, was exceptionally dry. This allowed fires to spread. As the Gaza war expanded, missile attacks across the Lebanon-Israel frontier also caused fires that destroyed forests and farmland. Firefighters in war zones face many dangers, as in Ukraine. RECONSTRUCTION Emissions have also increased due to the destruction of energy infrastructure both in Ukraine and Gaza. The Russians' attacks on oil depots have caused tons of fuel to burn, and the gas and electricity infrastructure has released powerful GHGs such as methane or sulphur-hexafluoride (SF6) which has a potential global warming 24,000 times higher than CO2. Solar panels provided a quarter (one of the largest shares) of Gaza's electricity before Israel attacked the enclave in October 2023. The destruction of solar infrastructure has led to a greater reliance on diesel generators, which are polluting. Neimark stated that the carbon footprint from post-war reconstruction of Gaza, which has seen the deaths of 68,000 people, will dwarf the emissions caused by the conflict. According to U.N. estimations, Israel's intensive bombardment destroyed over 90% of Gaza's housing, and has turned it into a wasteland. 60 million tons worth of debris were created. Concrete and steel are used in huge quantities to rebuild homes and infrastructure. These materials have a high carbon footprint. Neimark said that the loss of farmland and orchards, as well as shrubland in an area already susceptible to climate change effects, has increased the risk of desertification. The two wars have also increased global emissions far from the frontlines. Commercial flights have been forced to reroute due to airspace closures, increasing fuel consumption. De Klerk stated that flights from London to Tokyo take nearly three hours more. The Middle East unrest has also disrupted the international shipping in the Red Sea. This is due to the longer routes, and the increased speed of sailing. MILITARY DATA HOLE This new research about Gaza and Ukraine is a part of an overall push to increase transparency regarding global military emissions. Even during peacetime, the carbon footprint of armies is large - from maintenance of bases to transporting troops and equipment. Military exercises, weapons production, and military exercises all add up. According to the Conflict and Environment Observatory (a UK non-profit), about 5,5% of greenhouse gas emissions are attributed to militaries around the world. However, countries are not required by international climate bodies to report their military emission. Experts warn that the lack of data could lead us to underestimate the amount of emissions needed to keep the temperature rise to 1.5 degrees Celsius. Many countries are increasing their defence spending to respond to multiple crises. This is causing concern that this will increase emissions from military equipment and divert funds away from climate change efforts. Climate scientists say that militaries should be required to report their emissions. Neimark stated that "we can't begin making meaningful cuts until we have adequate baselines."
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Valero Energy's profit beats expectations for the third quarter on higher margins
Valero Energy, a U.S. refiner, surpassed Wall Street's expectations on Thursday for its third-quarter profits. This was due to a rebound in the refining margins. After two years of record profits, the refining margins rebounded in 2024 from their multi-year lows. This was due to refiners taking advantage of supply shortages that were caused by geopolitical tensions affecting Ukraine. U.S. refinery profit margins measured by the 3-2-1 Crack Spread In the third quarter, grew by nearly 29% in average compared to a year ago, aided by high diesel and gasoline margins, boosted both from robust demand and low inventory. The company reported that its average daily throughput volume increased to 3.1 millions barrels in the third quarter from 2.9million bpd one year ago. Valero’s refining profit per barrel was $13.14 compared to $9.09 one year ago. According to LSEG data, the company's adjusted profit for the three-month period ended September 30 was $3.66, compared to analysts' expectations for $3.05.
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Russian rouble strengthens vs dollar despite US oil sanctions
Analysts say that the Russian rouble could be supported in the short term by the United States' sanctions against Russia's largest oil companies. In his latest policy change on Moscow's conflict in Ukraine, U.S. president Donald Trump imposed sanctions against Rosneft (Russian oil company) and Lukoil (Indian oil company). This caused global crude prices to increase by over 4%. India also considered cutting Russian imports. The rouble had been trading flat against the Yuan at the Moscow Stock Exchange at 0950 GMT. Sofya Donnets, T-Investments, said that sanctions are a factor in foreign currency revenues. However, until November 21, a rapid inflow of currencies is possible as sanctioned firms bring in money. She added, "We expect some volatility in the short term." The U.S. gave Rosneft, Lukoil and their subsidiaries until November 21, to end operations. Analysts at VTB said that "Lukoil will be more inclined than Rosneft to repatriate their funds back to Russia. This includes not only the current revenue in foreign currencies but also previous accumulated resources." This could be a major support for the rouble in the future." The Russian stock exchange fell by 3.5%. Lukoil was among the top five losers with its shares dropping by more than 4%. Rosneft's shares dropped by 3%. Around half of Russia's oil production is produced by these two companies. Analysts say the measure may force Russia to discount its oil further on the world market to offset the risk secondary U.S. sanctions. However, this could be mitigated if global oil prices rise, which would support the rouble. (Reporting and editing by Ed Osmond, Gleb Bryanski)
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Greek divers remove ghost nets that destroy marine life
Divers have been working to remove abandoned fishing gear, or "ghost nets", from the coastline of Sapientza Island. These nets silently choke marine ecosystems. These nets are draped like curtains on the seabed and trap unknowing sea creatures. They slowly decompose into microplastics and poison the water and choke life. Divers worked quickly and efficiently to attach inflatable lift bags onto the heavy nets. Alexander Stavrakoulis said, as he scanned the horizon: "The ghost net creates a zone that is dead -- a zone where nothing lives." "Life is becoming outdated. It is important to remove these ghost nets as soon as you can. The legacy of farm-fishing threatens many of the sites in Sapientza. It is known for its pristine water and rich marine biodiversity. Aegean Rebreath, an environmental group, launched the cleanup in order to remove ghost nets at known hotspots. The nets are invisible to casual swimmers. They drift along with the currents and entangle everything they come into contact with. Plastics that are too small to be seen but toxic to eat can become microplastics as they degrade. Stavrakoulis said, "We can't just sit back and watch the sea life disappear." We have a duty to act. It's a great way to give back to the environment. George Sarellakos (46), founder of Aegean Rebreath, claimed that Greece's decades-old legal gaps had allowed abandoned fishing farms and discarded equipment to destroy marine habitats without being checked. He said: "Years have passed, but this phenomenon is still not addressed by any policy." What we need is an actual legal framework to prevent this from happening again. (Reporting and writing by TV, edited by Patricia Reaney; Ivana Sekularac).
EXCLUSIVE-Putin growing concerned by Russia's economy, as Trump mulls more sanctions
President Vladimir Putin has grown progressively worried about distortions in Russia's. wartime economy, simply as Donald Trump pushes for an end to the. Ukraine conflict, five sources with knowledge of the circumstance. told Reuters.
Russia's economy, driven by exports of oil, gas and. minerals, grew robustly over the previous two years in spite of numerous. rounds of Western sanctions enforced after its invasion of. Ukraine in 2022.
However domestic activity has actually ended up being strained in recent months. by labour lacks and high interest rates introduced to tackle. inflation, which has accelerated under record military costs.
That has actually added to the view within a section of the. Russian elite that a worked out settlement to the war is. preferable, according to 2 of the sources familiar with. believing in the Kremlin.
Trump, who went back to office on Monday, has promised to. quickly fix the Ukraine conflict, Europe's biggest because. World War Two.
This week he has actually said more sanctions, in addition to tariffs, on. Russia are likely unless Putin negotiates, adding that Russia. was heading for big trouble in the economy. A senior Kremlin. aide said on Tuesday that Russia had up until now gotten no specific. proposals for talks.
Russia, naturally, is economically interested in. negotiating a diplomatic end to the dispute, Oleg Vyugin,. previous deputy chairman of the Reserve bank of Russia said in an. interview, pointing out the risk of growing economic distortions as. Russia turbo-charges military and defence costs.
Vyugin was not one of the 5 sources, who all spoke on. condition of anonymity due to the level of sensitivity of the scenario. in Russia. The degree of Putin's concerns about the economy,. described by the sources, and the influence of that on views. within the Kremlin about the war, are documented here for the. very first time.
Reuters has actually previously reported that Putin is prepared to. discuss ceasefire choices with Trump but that Russia's. territorial gains in Ukraine need to be accepted which Ukraine. must drop its quote to sign up with the U.S-led NATO military alliance.
Kremlin spokesperson Dmitry Peskov, when asked about the. Reuters reporting, acknowledged bothersome elements in the. economy, however stated it was developing at a high rate and was able. to satisfy all military requirements incrementally along with all. welfare and social requirements.
There are issues, but regrettably, issues are now. the buddies of almost all nations of the world, he said. The scenario is evaluated as stable, and there is a margin of. safety.
Trump is focused on ending this ruthless war, by. engaging a wide range of stakeholders, White Home National. Security Council representative Brian Hughes stated in action to. Reuters' questions. In current weeks, Trump's advisers have. walked back his boast that the three-year-old war could be. solved in a day.
Simply days before Trump's inauguration, outbound U.S. president Joe Biden's administration imposed the broadest. bundle of sanctions to so far target Russia's oil and gas. earnings, a relocation that Biden's nationwide security adviser, Jake. Sullivan, said would provide Trump utilize in any talks by. applying economic pressure on Russia.
Putin has said that Russia can battle on as long as it. takes and that Moscow will never bow before another power over. essential national interests.
Russia's $2.2 trillion economy had actually till just recently shown. exceptional endurance throughout the war, and Putin has actually applauded top. financial authorities and business for circumventing one of the most. strict Western sanctions ever troubled a major economy.
After contracting in 2022, Russia's GDP grew faster than the. European Union and the United States in 2023 and 2024. This. year, nevertheless, the central bank and the International Monetary. Fund forecast sub-1.5% growth, although the government tasks. a somewhat rosier outlook.
Inflation has actually edged toward double digits regardless of the main. bank hiking the benchmark rates of interest to 21% in October.
There are some issues here, particularly inflation, a specific. getting too hot of the economy, Putin said in an annual news. conference on Dec. 19. The government and the central bank are. already entrusted with bringing the pace down, he stated.
' WAR GOALS MET'
In 2015, Russia made its most considerable territorial. gains considering that the early days of the war and it now controls nearly. a fifth of Ukraine.
Putin thinks crucial war objectives have actually already been fulfilled,. consisting of control of land that links mainland Russia to. Crimea, and compromising Ukraine's military, stated among the. sources acquainted with thinking in the Kremlin.
The Russian president also recognizes the strain the war is. putting on the economy, the source said, citing actually big. problems such as the effect of the high interest rate on. non-military businesses and market. Russia has treked defence spending to a post-Soviet high of 6.3%. of GDP this year, accounting for a 3rd of budget expenditure. The spending has actually been inflationary. Along with wartime labour. shortages, it has actually driven incomes higher.
On top of that, the government has actually looked for higher tax. revenues to reduce the financial deficit.
Vyugin, the former deputy guv, said continual high. rates would put pressure on the balance sheets of organizations and. banks. Russian coal and steel manufacturer Mechel, owned by. entrepreneur Igor Zyuzin and his household, on Tuesday said it had. restructured its debt, under pressure from low coal prices and. high interest rates.
PUTIN ISSUE
Putin's aggravation appeared at a Kremlin conference with. magnate the evening of Dec. 16, where he scolded top. financial officials, according to two of the sources, who have. understanding of conversations about the economy in the Kremlin and. government.
One of the sources, who was briefed after the conference, was. informed Putin was visibly displeased after hearing private. financial investment was being cut because of the cost of credit.
The Kremlin released Putin's initial remarks praising. company however did not determine any of business individuals. at the mainly closed-door meeting. Reuters verified with one. source that Reserve bank Governor Elvira Nabiullina was not. present.
On Wednesday, Putin stated in televised remarks to ministers. that he had actually just recently gone over with business leaders the dangers. of a decrease in credit activity for long-lasting growth, in an. apparent referral to the December conference.
A few of Russia's most powerful business people, including. Rosneft CEO Igor Sechin, Rostec CEO Sergei Chemezov, aluminium. magnate Oleg Deripaska and Alexei Mordashov, the largest. investor in steel-maker Severstal, have actually openly criticised. the high rates of interest.
Nabiullina has actually dealt with pressure not to raise rates even more. from 2 of Russia's most effective bankers - her former boss,. Sberbank CEO German Gref, and VTB CEO Andrei Kostin - who feared. that Russia was heading towards stagflation, one source with. understanding of discussions about the economy stated.
In his Dec. 19 comments, Putin required a well balanced rate. choice. The next day, at its last financial policy meeting of. the year, the reserve bank held the rate at 21% in spite of market. expectations that it would hike by 200 basis points. In a speech after the decision, Nabiullina rejected caving in to. pressure. She said criticism of central bank policy increased. when rates were high.
Nabiullina, Gref and Kostin did not instantly respond to. requests for remark for this story.
NABIULLINA
Nabiullina, a former financial aide to Putin who likewise served. as his economy minister, is one of Russia's most effective females:. she has functioned as central bank governor because June 2013 and. three of the sources stated that Putin trusts her.
Simply a couple of weeks after sending out soldiers into Ukraine in 2022,. Putin proposed Nabiullina take a third term as reserve bank. chief. Her term ends in 2027.
Her fans say critics miss the underlying reason for the. inflation - the huge spending on the war - and say that without. her, financial stability would have be threatened.
Some lawmakers have actually required her to be replaced, an. not likely outcome, according to 2 of the sources.
No one in such a circumstance will alter the guv of the. reserve bank, stated one of the sources, who is acquainted with. conversations about the economy. Nabiullina's authority is. indisputable, the president trusts her.
(source: Reuters)