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Kazakhstan freezes fuel and utility prices amid inflation
Kazakhstan's Government announced on Thursday that it would freeze the price of some diesel and petrol as well as suspend utility tariff increases until 2026. This is due to the double-digit inflation rate continuing to increase. In a Telegram statement, the government announced that price freezes for diesel and AI92 gasoline will remain in effect until inflation stabilizes. It also said it would increase funding for the domestic agriculture to help prevent any price increases on what it called "socially important" food products. The government also claimed that it would reduce the tax revenue collected by small businesses, and make affordable mortgages more available. Inflation rates in Kazakhstan, which is a mineral giant and produces around 2% the world's supply of oil, were 12.9% in September. This was significantly higher than those in Russia, Kazakhstan's neighbour and main trading partner, where the prices have risen since the start of the war in Ukraine. Kazakhstan's central banks raised rates last week to an unprecedented 18%. Since the invasion of Ukraine, inflation has also spiked in other Central Asian countries with economies that are closely tied to Russia. The price of LPG soared suddenly in January 2022, causing the worst unrest in Kazakhstan since 1991 when the 20-million population gained independence from the Soviet Union. The fuel price protests that year grew to widespread unrest and hundreds of deaths. Russian troops were deployed to restore order.
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Gold reaches new records as Fed rate-cut betting drives gold to record highs
Gold reached a record-high for the fourth consecutive session on Thursday as investors flocked into the metal of safety due to brewing U.S. China trade tensions, and the U.S. Government shutdown. Bets on interest rates cuts also fueled the momentum. As of 09:10 am, spot gold was up by 0.8% to $4,242.65 an ounce. ET (1310 GMT), after bullion reached a record high earlier of $4,254.61. U.S. Gold Futures for December Delivery were up 1.3% to $4,256.70. Yellow metal is up over 60% in the past year, thanks to geopolitical tensions and aggressive bets on rate cuts, central bank purchases, dedollarisation, and strong ETF flows. The rate-cut scenario heading into 2026, as well as developments surrounding U.S. China will determine the trajectory of gold. "If no deal is made between the U.S. and China, the relationship will continue to deteriorate. That could be what gold needs to break the barrier of $5000/oz," said Zain Vwda. Analyst at MarketPulse. This week, investors have been focused on the U.S.-China Trade Spat. Washington criticised China's increased rare earth export controls on Wednesday as a danger to global supply chains. Traders have priced in a rate cut of 25 basis points by the U.S. Federal Reserve in October and a second in December with probabilities as high as 98% and 95%. Gold that does not yield is usually a good investment in an environment with low interest rates. Vawda stated that short-term gold pullbacks are likely to be temporary as bullish investors use dips to enter positions. HSBC increased its forecast for the average price of gold in 2025 to $3,355 per ounce, citing geopolitical tensions and economic uncertainty, as well as a weaker U.S. Dollar. The ongoing U.S. shutdown has also halted the release of scheduled economic data. A Treasury official warned that the loss in output could be as high as $15 billion per week. Silver spot fell by 0.2%, to $52.96 an ounce. It had hit a record high $53.60 per ounce on Tuesday. The rally in gold was mirrored and the tightness of the spot market supported this decline. Palladium rose 1.8%, to $1,564.00, while platinum was up 0.7% at $1,665.24. (Reporting and editing by Vijay Kishore in Bengaluru, Sherin Elizabethvarghese from Bengaluru)
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HSBC increases average gold price forecasts 2025 and 26
HSBC raised its forecast for the average price of gold in 2025 to $3,355 from $3,215 because of safe-haven demand fueled by geopolitical tensions and economic uncertainty. In a note from October 15, the bank stated that "sentiment is bullish" as it expects rallies to continue into 2026, aided both by buying from the official sector and demand for gold among institutions as a diversifier. HSBC has also increased its forecast for the average 2026 gold price to $3.950 from $3.125. GOLD HITS A NEW RECORD HIGH HSBC reported that the demand for gold is increasing due to mounting fiscal deficits across major economies, including the U.S. Gold has been traditionally viewed as a safe haven during economic and geopolitical instabilities. Its value has increased by over 60% this year and reached a new record of $4,250.89. China accused the U.S. on Thursday of inciting panic over Beijing's controls on rare earths and said Treasury Sec. Scott Bessent made "grossly distortion" remarks about an important Chinese trade negotiator. The Chinese rejected a U.S. request to roll back curbs. HSBC stated that "central bank demand will likely remain high due to geopolitical risk and dollar diversification but lower than peak levels in 2022-23". HSBC stated that a lower rate cut than the Federal Reserve's current projections for this year or next could dampen the rally. Investors have priced in a rate cut of 25 basis points at the Fed meeting this month, and expect another in December. HSBC stated that the gradual decline in global inflation could also dampen jewelry purchases, which are driven by inflationary fears. The bank also maintained its average 2025 price forecasts of palladium and platinum at $1,100 and $1,215, respectively. Reporting by Noel John, Bengaluru. Editing by Mark Potter
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Gold prices spike in India before festivals, causing a surge in gold smuggling
Government and industry officials said that gold smuggling in India had increased ahead of major festivals. This was due to the record high prices and supply shortages. Import taxes on gold have been reduced to 6%, down from 15% in the past year. Customs and Directorate of Revenue Intelligence officials (DRI), however, said that smuggling had increased in the last few weeks. Several attempts to smuggle were foiled at Indian airports. A bullion dealer in Chennai said that smugglers are now able to convert gold quickly and easily, thanks to the strong demand for festival gifts and limited supplies. This month, Indians will celebrate Dhanteras (Diwali) and Diwali (Dhanteras), festivals when purchasing gold is considered auspicious. These are also the busiest days to buy the precious metal. On Thursday, gold prices in India reached a record of 128,395 rupees for 10 grams. This marks a 67% increase so far this season. Smuggling gold at this price is lucrative for grey-market operators. They can make more money by avoiding the 6% import tax and a local sales tax of 3%. "The payoff is super tempting for them," said an unnamed senior bullion trader in Mumbai. The margin for smugglers has fallen to 630,000 rupees a kilogram after the import duties were reduced in July. The bullion dealer stated that investors are now chasing after gold, causing a shortage of supply and driving up premiums. A jeweller in Kolkata said that banks were unable to satisfy the demand for the stock and charged very high prices. This week, Indian dealers quoted a premium. The price of gold can be up to 25 dollars per ounce more than the official domestic prices. This is the highest since at least a decade. The government registered 3,005 gold-smuggling cases in the fiscal year 2024/25 that ended in March. They also seized 2.6 tons of this metal. (Reporting and editing by Alexander Smith; Rajendra Jadhav)
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EU to provide support to countries affected by Carbon Border Levy
The European Union is offering development funding to countries that are affected by its carbon border tax, said the European Commission on Thursday. It was an attempt to calm the concerns of developing economies about the policy. Next year, the EU's Carbon Border Adjustment Mechanism (CBAM), which will be imposed on CO2 emissions from imported goods such as steel and cement, will begin to impose fees. Brazil, South Africa, and India have all criticised the measure, saying it penalizes developing economies. In a document published Thursday that outlines the EU's priority on climate and energy diplomacy the Commission stated it would support countries via "Global Europe", an international development programme funded by the EU budget of 200 billion euros ($233 billion). EU SAYS IT WILL NOT BACKTRACK BUT IS NOT DEAF TO CONCERNS The document stated that "Global Europe intends to maximize its contribution to the decarbonisation and adaption needs of developing countries while CBAM gradually becomes applicable." It said that "this would help ease concerns raised about EU legislation, as well as strengthening partnerships and supporting broader regulatory reforms." The EU Carbon Border Levy could be reduced by helping developing countries reduce emissions and switch to clean energy. Dan Jorgensen, EU energy commissioner, said that the bloc will not remove its climate laws to satisfy trading partners. He said that Brussels was more interested in investing in clean industries which could be beneficial to both sides, such as the production of renewable energy and hydrogen in Africa, which it wants to import. In an interview, Jorgensen said, "To the extent we can help these nations, we'll be very open, both in terms of looking at possible funding arrangements but also in terms of technical assistance." He added, "We are not going to go back on our green transition... But we are not deaf to the worries of partners." The EU document also outlined plans to engage businesses in the bloc's diplomacy on energy and to identify priority clean tech investments overseas, as Europe attempts counter China's dominance of manufacturing green technologies like batteries and solar panel.
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CMC purchases Foley Products at $1.84 Billion in a wave of building products deals
Commercial Metals Company announced on Thursday that it would acquire the concrete supplier Foley Products Co. for $1.84 Billion in cash. Dealmaking is accelerating across the U.S. construction products sector as a result of a drive for scale and local supply chains. The Irving, Texas-based company said that it expected the Foley acquisition to have a positive impact on earnings and cash flows and deliver annual EBITDA synergies between $25 million and $30 million. Dealmaking has increased in the U.S. construction products industry as companies look to scale and local supply chain to offset tariffs. Demand is supported by new housing and repair and renovation. Last week, the roofing-materials firm TopBuild SPI bought rival SPI in exchange for $1 billion cash Earlier this year, Home Depot's unit acquired specialty-building-products distributor GMS for about $4.3 billion in June, while QXO clinched an $11 billion deal for Beacon Roofing Supply in March. CMC reported that it had beaten Wall Street's expectations for its fourth quarter adjusted profit. Earnings of $1.37 per common share compared to the analysts' expectation of $1.36, according data compiled by LSEG. In premarket trading, shares of the company rose 1%. Foley provides precast concrete and concrete pipes used in site infrastructure, such as utility connection, water supply and Stormwater Management. Newnan-based Georgia company operates 18 locations in nine states of the U.S. Southeast. It also has a presence throughout the Central and Western Regions. CMC was advised by Moelis & Company as its financial advisor and Akin, Gump as its legal counsel.
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US rate cuts bets continue to drive gold's record-breaking run.
The gold price reached another record on Thursday as investors sought out the safe haven due to U.S. China trade tensions, the U.S. Government shutdown and prospects of rate cuts. As of 1208 GMT, spot gold was up by 0.8% to $4,242.38 an ounce. Bullion touched a new record high at $4,247.49 earlier, rising for the fifth consecutive session. U.S. Gold Futures for December Delivery were up 1.4% to $4,258.50. Gold prices, which are traditionally seen as a safe haven during periods of uncertainty, have risen by 60% in the past year. This week, investors have been focused on the trade dispute between the two world's largest economies. On Wednesday, U.S. officials criticized China's expansion of export controls on rare earths as a danger to global supply chains. Investors are turning more to gold because of renewed trade frictions, said Nitesh Sha, commodities strategist with WisdomTree. He added that the gold breakout is also indicative of investor uncertainty over U.S. policies. Shah said that there is a high probability the metal will remain above $4,200. The gold rally is 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. A Treasury official stated on Wednesday that the shutdown of the federal government, which has lasted for two weeks, could cost the U.S. economic system as much as 15 billion dollars a week due to lost production. On the monetary front, traders have priced in a 25-basis-point cut from the U.S. Federal Reserve for October, with another one in December. These are viewed as 98% and 85% chances, respectively. Gold that does not yield is usually more profitable in an environment with low interest rates. Aakash Doshi is the head of State Street Investment Management's gold metals strategy. Gold smuggling has also increased in India, the second largest buyer of precious metals in the world. This is because of record-high prices and shortages. Silver spot fell by 0.1%, to $53.00 an ounce. It had hit a record high $53.60 per ounce on Tuesday. The rally in gold was mirrored and the tightness of the spot market supported this decline. Palladium rose 1.7%, to $1,562.23, while platinum climbed 1.1%, to $1673.12. (Reporting and editing by Elaine Hardcastle, Ed Osmond and Anushree Mukerjee from Bengaluru)
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CEO Daniel Klier leaves role at South Pole carbon consultancy
Two people with knowledge of the situation said that on Thursday, the head of South Pole, an carbon finance consultancy and project development company, left his position and was replaced with immediate effect by Nadia Kaddouri, current chief financial officer. Daniel Klier was appointed CEO of South Pole in May 2024. He had to lead a turnaround as a response to concerns regarding the Kariba Forestation Project in Zimbabwe, in which South Pole was involved. Klier did not respond to an immediate request for comment. It is unclear why he left the Swiss firm. Klier is expected to join the advisory board of the company, according to a source who spoke on the condition of anonymity. These sources are not authorized to comment publicly on this matter. 'COMPREHENSIVE TRANSFORMATION' South Pole stated in a September statement that the company had focused its efforts over the past two years on "a comprehensive transformation" of their carbon finance consultancy. A new advisory board was appointed and a review of the company's quality, compliance and risk protocols were conducted. The company is also backed by Lightrock, an impact investor. South Pole's involvement in the Kariba project REDD+, part of United Nations efforts for curbing carbon emissions by protecting forest, was criticised 2023. The media questioned if the project preserved as much of the forest as promised, and claimed that the communities had not benefited as much as expected. South Pole, the developer of carbon assets for the project, and the company responsible for the sale of credits generated on the market, terminated its relationship with Kariba in 2023. In a press release at the time, it stated that it only sold carbon credit from the project which were verified and fully valid by Verra. In November 2023, South Pole's Board appointed a new leadership team to improve governance and selection of projects. The board said that it was "determined" to learn from its experience working with the Kariba project in Zimbabwe. Verra said last month that a review found that more than 15 millions excess credits had been issued. The actual deforestation in the Kariba Project... was much lower than the initial estimated deforestation," the report said. Klier's LinkedIn profile states that he was the global head of sustainable financing at HSBC from 2017 to 2021, following a five year stint as group director of strategy. Before joining South Pole, Klier was the CEO of sustainability data company ESG Book. (Reporting and editing by Virginia Furness)
More US companies are saying that retailers are turning away their products as 'Buy Canadian" grows
The "Buy Canadian' movement has sent new waves of concern to the U.S. consumer companies who had hoped to sell their products in Canadian retail stores.
Jessica Hung, CEO of California-based Parasol Co, said that the company has been working with a distributor since January to increase sales to new retailers, including convenience shops, in Canada.
Hung said that the distributor, whom she declined to identify, had stopped working on the deal in early March due to the growing anti-American sentiment? Canada.
Hung, referring the distributor, said that "they were instructed by a retail to pause any American-brand launch." They told us that they would reevaluate the situation when the market conditions permit.
Hung said, "That is a disruption that we never expected." I never heard about this until now. "It's definitely a lot of headwinds."
The dramatic reorganization of Canada's shelves demonstrates the impact of patriotic consumerism in Canada. In 2024, Canada imported almost $350 billion worth of goods from the United States, making the United States its largest trading partner. The annexation of Canada by U.S. president Donald Trump, the 25% tax on Canadian steel and aluminum and the threat to tax other products from Canada have led many Canadians to avoid buying U.S. made goods.
Hung stated that Parasol, a company which sells mainly online and in Target stores in the U.S.A., is working to label its packages in French in order to appeal more directly to Canadian consumers. Hung said that she has already started making decisions on which products will be included in the Canada distribution agreement, now scrapped.
Shopper Rebecca Asselin, a mom and health insurance professional from Saint-Jean-sur-Richelieu, Quebec, has been using social media to share her story about her search for Canadian products.
She said she switched to Royale diapers made by Irving Personal Care in Moncton (New Brunswick), one of Canada's only manufacturers of baby training pants and diapers. I never thought about where diapers are made before, but it seems that Canadian diapers can be hard to find. This is a major change for us."
Irving Personal Care says retailers from across Canada have reached out to discuss the possibility of increasing distribution.
Jason McAllister is Irving Personal Care's Vice President of Business Operations. He said that weekly shipments had quadrupled.
Companies say that the Buy Canadian campaign is hurting more than just one business. It also affects drinks and citrus fruits from the U.S. Brown Forman, the maker of Jack Daniel's, said that in early March that the removal from Canadian stores of American bourbons and whiskeys was worse than Canada's tariffs.
Early March, a source familiar with Californian citrus exports said that Canadian retailers had cancelled their orders.
GT's Living Foods in Los Angeles, California and its Synergy Kombucha products are known. They said that retailers in Canada including Walmart have placed fewer orders because of the uncertainty surrounding tariffs.
The distributors of Walmart Canada, Loblaw's Metro, and Sobey's have told us that they will only buy one truck of product instead of two, as retailers are cautious and waiting to see what the outcome of this (tariff) situation will be," said Daniel Bukowski. He managed these accounts for GT's Living Foods while serving as senior vice president for sales.
Walmart stated that it will "continue to work closely with its suppliers to find the most effective way forward in these uncertain times."
Loblaw's & Sobey's have not responded to our requests for comments.
Metro prioritizes Canadian local products when possible. Metro said it prioritizes local Canadian products whenever possible.
Demeter Fragrances is a small, family-owned business in Pennsylvania that produces perfumes. It has announced it will not expand to Canada by 2025. Mark Crames is the chief executive officer of Demeter Fragrances. He said that Canadians have turned away from American products. "It seems to be a waste of time and effort, so we scrapped it."
According to Vice President Tracy Hayes, Grime Eater Products Limited is a Canadian manufacturer that produces Response and Luster Sheen products. The company has been unsuccessfully trying to convince Canadian Tire to carry its products for many years.
She said that the future is promising with the Buy Canadian movement spreading.
She learned that Canadian Tire, which operates 504 stores across Canada, was planning to reduce its offering of Fast Orange, the hand cleaner brand produced by Permatex, her U.S. competitor.
Permatex and Canadian Tire did not respond to requests for comment. (Reporting from Siddharth Cavale in New York, and Nivedita Bali in Toronto; Additional reporting by Jessica DiNapoli; Editing by Aurora Ellis.)
(source: Reuters)