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Boluarte, Peru's vice president, rose to become the embattled leader
Dina Boluarte, the Peruvian president's tenure had been marked by turmoil since the moment she took power. However, the unpopular leader managed to hold on for many years before being removed by Congress early Friday morning. Boluarte is a 63 year old mother of two who was born in a village located in the Apurimac mountains. She was elected vice president in 2021. In late 2022, after former president Pedro Castillo had been arrested for trying to dissolve Congress and was removed from office, Boluarte became Peru's very first woman head of state. Castillo, a leader who wore a cowboy hat and was popular among Peru's rural and indigenous populations, was arrested and there were protests all over the country. The government's heavy-handed response to the unrest led to the deaths of dozens in areas outside of the capital. Boluarte has indigenous roots and defended using force. He has faced investigations regarding the deaths of protesters, but has been shielded later by Peru's Constitutional Court. She was also involved in a number corruption scandals. Her brother was placed under pre-trial custody on corruption charges, and there were investigations into her luxury jewelry and watches. Boluarte was also criticized for the rising crime rate in the country, which has sparked protests around the country and the capital. Boluarte's approval rating was just 2% to 3%, which made her one of the least popular leaders in the entire world. In September, Gen-Z activists protested against Boluarte. This led to clashes with police. Boluarte managed to stay in power despite all odds until Thursday evening, when the Congress convened an emergency session for four motions of impeachment. Boluarte's term, which was initially meant to run until July 2026 was removed by a vote taken just after midnight. (Reporting and editing by Raju Gopikrishnan; Alexander Villegas)
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Queensland, Australia reverses policy and pledges to continue using coal power
The Queensland government in Australia announced on Friday that it will continue to run coal-fired power plants until at least 2040. This reverses a plan to quickly switch to renewables. It also makes national emission reduction targets more difficult to achieve. The Liberal National Party, which is centre-right, won the election last year in Queensland. This huge area of land in Australia’s northeast produces more than 60% electricity from coal-fired power plants owned mostly by the state. David Janetzki is the Queensland Treasurer and Minister for Energy. He announced a five-year plan to address energy issues. He said that Queensland's coal-fired generation fleet was the youngest in Australia. State-owned coal generators would continue to run as long as the system needs them and the market supports their operation. The announcement highlights the differences between Australia's main political parties in climate policy. The Labor Party, which controls the federal government and the majority of states and territories, is a strong advocate for the rapid development and use of renewable energy. Last month, the federal government announced its commitment to reduce national emissions from 2005 levels by 62%-70% by 2035. Queensland's former Labor government stated that 80% of its power would come from renewable sources by 2035, and the state would "no longer rely on coal". Many Liberal Party and National Party figures oppose, however, what they view as an overly rapid rollout of renewable energies that would ruin the landscape and impede the economy. Janetzki stated that consumers would save money by sticking to coal generation in Queensland, a major coal producing state. According to his plan, coal plants will be operated at least until the end of their design life, which is in many cases around 2040. According to the plan, plant lifespans can also be extended if necessary. The roadmap for the next five years also includes the construction of a gas-fired power plant in the State and a commitment to A$1.6 billion ($1.1billion) to maintain coal, gas, and hydroelectric plants in the State, as well as A$400m to encourage private investment in renewables and gas, energy storage, and energy storage. Janetzki stated, "This plan is sensible and pragmatist, based on engineering and economics, not ideology."
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Gold gains for the eighth consecutive week on strong demand for safe-havens
Gold was stable below $4,000 per ounce and set to make an eighth consecutive weekly gain on Friday, boosted by geopolitical tensions and economic uncertainty and expectations for further U.S. interest rate cuts. Gold spot fell 0.1% at $3,971.43 an ounce as of 0514 GMT but rose 2.2% on the week. U.S. Gold Futures for December Delivery rose 0.3% to $3985.8. Silver fell 0.9%, to $49.55 an ounce. This is a slight decline from the record-high of $51.22 per ounce that was reached on Thursday. The options markets showed a rise in gold volatility and downside protection during the last stages of this rally. It seems like a good time for gold bulls book some profits. "I expect that any pullback will be limited," said City Index senior analyst Matt Simpson. Israel's government approved a ceasefire agreement with Hamas, paving the way for the suspension of hostilities within Gaza in 24 hours, and the release of Israeli hostages within 72 hours. Israeli attacks on the besieged Gaza enclave continue. ANZ analysts stated in a report that a slowing economy, rising inflation, a changing geopolitical environment, and diversification away from U.S. investments and the dollar would keep the investment demand for gold and central bank purchases strong. Renewed rate cuts will also help the metal. On Wednesday, the price of gold surpassed $4,000 an ounce for a first time, hitting a new record high at $4,059.05. This non-yielding investment, which is traditionally used as a hedge in times of geopolitical or economic uncertainty, has risen by 52% so far this year. The rally was fueled by geopolitical tensions, central bank purchases, increasing exchange-traded fund inflows and expectations of U.S. interest rate cuts. The minutes of the U.S. Federal Reserve meeting for September, released on Tuesday, revealed that Fed officials were in agreement that the risks to the U.S. employment market were sufficiently high to warrant a cut in rates, but they remained cautious due to stubborn inflation. In September, the Fed began its cycle of rate cuts with a reduction of 25 basis points. The traders expect a 25-bp rate cut in both October and December. This is a 95% chance. Palladium fell 2.2%, to $1.381.29. Platinum was down 1% at $1,602.25 (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
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Gold's record-breaking run has created new rules for investors
Investors are rethinking their views on gold as it surges to new heights, while AI-driven stock rallies and bitcoin's red-hot price force them to rethink what is driving this oldest of asset classes. This week, gold surpassed $4,000 per ounce, a record high. With a 53% increase by 2025, it is on track to have its best year ever, surpassing bitcoin's 30% gain and the S&P 500's 15% rise, plus the array of tech giants. Metals tend to do well when investors are worried about inflation, an economic slowdown, or possible market turmoil. When investors' risk appetite increases, the metal tends to fall behind shinier options that don't require additional cash for storage or insurance. In 1980, gold prices surged when U.S. inflation topped 13%, causing the stock market to crash and the economy to tank. And in 2008, the global financial crisis caused Wall Street stocks and the economy to plummet by 32% in just six months. The Unusual Tandem Trip for Gold and Stocks Gold is now rising along with stocks and Bitcoin, as investors bet heavily that the U.S. will cut rates and as concern grows over the dollar as the top reserve currency in the world. Arun Sai, senior multi-assets strategist at Pictet, said: "When there is a paradigm change in the way that the current economic system works, people have always moved to gold." Think of it as a debasement hedge. Investors are unnerved by the political drama, France's budget troubles, and the concerns over the independence of the central banks. Meanwhile, the war in Ukraine continues, and there are the first signs that a Gaza Peace Deal is on the horizon. Wall Street is being driven by the artificial intelligence boom, creating concerns about a bubble. Meanwhile, President Donald Trump’s large spending plans along with his tariffs, and attacks against the Fed, have hurt Treasuries, and the dollar has fallen 10% this year compared to other major currencies. Jamie Dimon, CEO of JPMorgan Chase, believes that there is an increased risk of a significant U.S. stock correction in the next six to two years. Gold has been boosted by the tariffs, which have also stoked inflation fears. Michael Metcalfe is the head of State Street's macro strategy. Gold and Fed independence could be two sides to the same story, as the most powerful central bank in the world may not act when tariff-driven inflation increases. Inflation in the G7 group, which includes the richest nations, averaged 2.4% compared to 1.7% a year ago. Most central banks have either cut rates or are holding steady. Trump has insulted Fed chairman Jerome Powell and is trying to remove one Fed official. He also nominated Stephen Miran, an ally, as a new governor. Gold has increased by around 20% since August. SPILLOVERS FROM GOLD STOCKS Inflation expectations are increasing, despite the slowdown in the U.S. labor market. Investors expect U.S. interest rate cuts to continue into 2026. This will help gold and equities. Rhona O’Connell, StoneX's head of EMEA and Asia market analysis, says that the "efficient frontier", partly explains gold's rise in tandem with stock prices. The sweet spot is the point where a portfolio manger generates the highest return given the risk that they are willing to take. She said that gold often moves in the opposite direction of stocks, which makes it an excellent risk mitigater. Managers can increase their gold holdings when the price of gold increases to reduce the risk that stocks will fall, and earn extra returns. O'Connell stated that "when you've had equities in a great big tear, some of the additional value will spillover to additional gold holdings." Gerry Fowler of UBS' equity strategy department noted that increased retail demand was reflected in the gold price. "Every time someone puts more money in the gold ETF the ETF then has to go and buy physical gold," said he, adding that it isn't the only area of the market with what he called "bubbly behavior" and "retail excitement". A HEDGE FOR AN AI Gold is a hedge against the growing concern over an AI-driven stock crash. Both the Bank of England, and the IMF have expressed their concerns. Trevor Greetham said that people are just as bullish on AI as they are gold. If there was a severe recession and a crash of AI, you may find that gold rises another leg. The rise of gold is largely due to the waning trust in the dollar. Central banks are avid buyers of gold, holding about a fourth of their reserves as bullion. This is one way to move away from the dollar. Nutshell Asset Management CIO Mark Ellis predicted that the trend would continue as U.S. Tariffs encourage exporters to look for new markets and reduce their reliance upon the dollar. What is his main opinion on the recent gold boom? He said, "It is Donald Trump." (Reporting and editing by Amanda Cooper and Lucy Raitano; Dhara Ranasinghe and Veronica Brown)
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All talk about the MORNING BID EUROPE
Gregor Stuart Hunter gives us a look at what the future holds for European and global markets. Sanae Takaichi of Japan, who is on track to become the country's first female prime minister, has been setting pulses racing around Tokyo in recent months. However, she is now facing pushback for her previous tough words towards the central banks on the campaign trail. Takaichi, a fiscal dove and avowed critic of the Bank of Japan for increasing interest rates last year, has now backed down from her criticism of the central banks. However she still urges the BOJ "to align" with the government’s goal. Her criticism could be diluted because of the ongoing discussions with Komeito, the junior coalition partner to the ruling Liberal Democratic Party. The yen is another factor. Katsunobu Kato, the Finance Minister, expressed concern today about the "unilateral, rapid movements in the foreign exchange markets" which have caused the yen to fall 3.5% since Takaichi was elected this weekend, to 153 versus the dollar. This is the lowest level the yen has been in eight months. The market fantasies about a second round of Abenomics may be met with reality. Emmanuel Macron is also looking to appoint a sixth prime minister in the last two years. Early European trades saw little change in the pan-regional futures. The U.S. dollar index slipped 0.1% after the S&P 500 declined on Thursday. This was a retracement of gains made after political concerns in Japan and France had pushed the greenback up to a 2-month high. The Asian stock market limped to the end of the trading week on Friday. It was down by 0.4% as Wall Street's exhaustion lingered in early trading. Commodity markets also took a break after their recent surge. Chinese stocks fell after Beijing tightened its export controls for rare earths on Thursday. The sector is now under more scrutiny ahead of the talks between Presidents Trump & Xi Jinping. Gold fell, extending its declines, after breaking a four-day streak of gains on Thursday. This was shortly after it broke the $4,000 barrier for the first. Gold spot was trading at $3,964.50 an ounce down by 0.3%. Brent crude fell 0.4% on the energy markets to $64.95 a barrel after Israel's government approved a ceasefire Friday with Hamas, clearing the path for the suspension of hostilities in Gaza and the release of Israeli hostages there within 24 hours. The Nobel Peace Prize will be announced at 9am GMT. Polymarket gives a 70% chance of Maria Corina Machado being the leader of Venezuela's opposition. Donald Trump has a 3% chance of winning. Key developments on Friday that may influence the markets: UK debt auctions: 1-month, 3-month, and 6-month government bonds
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Shanghai copper continues to gain on fears of supply shortages
Shanghai copper continued to rise on Friday as investors bet that supply shortages will continue despite ongoing disruptions in mines. As of 0330 GMT, the most active copper contract at Shanghai Futures Exchange had risen 0.24%, to 86250 yuan (12,106.28 dollars) per metric tonne. The week was expected to end with a 3.57% increase, due to China's National Day holidays from October 1-8. The Shanghai contract moved followed the benchmark three-month Copper on the London Metal Exchange which reached $11,000 per ton on Friday, close to the all-time record of $11,104.5 in May 2024. The London future dropped below the $11,000 mark, falling 0.89%, to $10,770.5 per ton. It hopes to finish the week with a 0.51% increase. Data from Cochilco (the country's copper commissioner) showed that the copper output of Chilean state-run mining company Codelco fell 25% in August. This was after a deadly mine collapse halted production at its most profitable mine. Codelco has been working on accelerating recovery since September. However, the data shows that supply shortages are increasing after Freeport declared force majeure for its Grasberg Mine in Indonesia. Analysts at Chinese broker Maike Futures stated that the market was now dominated by bulls. They noted that a drop in China's domestic refined copper output also contributed to this bullish sentiment. Other base metals in the SHFE index, such as aluminium, rose by 0.07%. Zinc gained 0.45%. Nickel added 0.34%. Lead increased 0.29%. Tin rose by 0.59%. London Futures, on the other hand, mostly reversed a rally that was led by copper. Aluminium fell 1%, Nickel shed 0.92% and Tin dropped 1.46%. Lead also declined 0.12%. Zinc, the only metal to gain ground, rose by 0.22%. Analysts at London-based broker Sucden Financial say that base metals are advancing in a fragile rally driven by momentum, rather than real improvements in fundamentals. They also said the rally depends on traders breaking through resistance levels. Reporting by Dylan Duan, Lewis Jackson and Sumana Nandy; Editing by Sumana Niandy.
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Nayara, a sanctions-hit company, scrambles with New Delhi to maintain operations
Since late August, Nayara Energy refinery in western India has been moving fuel by rail to inland depots with two or three 50-tanker trains per day. This is more than twice the amount of diesel and petrol it used to transport previously. The European Union imposed crippling sanctions on the Russian-owned refinery on July 18 that shut it out of many markets. It forced the refinery to find new customers and divert more fuel into the domestic market. Sources from the Indian government and the company claim that the ongoing crisis at Nayara has forced the Indian government to provide enough support for it to continue operating, while avoiding actions that could provoke an Western backlash. New Delhi has taken several measures to assist a refinery that is owned by a friendly country. These include providing tanker train services and approving coastal vessels for the transport of its products. Nayara is owned by the Russian state oil giant Rosneft, which puts it in the middle of a long-standing relationship between New Delhi and Moscow. This puts India at odds against its Western allies. The refiner's biggest shareholder, the Russian state oil company Rosneft relies solely on Russia to import oil, after Iraqi crude and Saudi Arabian oil supplies were cut-off following the EU measure. This makes it vulnerable if flow disruptions are caused by tighter sanctions or increased U.S. pressurization. "The government is trying cover two possible scenarios: trying to support Nayara, while remaining aware of the fact there will be a persistent global pressure to tighten the sanctions," said Amitendu Palait, a Senior Research Fellow at the National University of Singapore Institute of South Asian Studies. He said that "Long-term Support might not be sustainable until the global dynamics change, such as a resolution between Russia & the U.S.A. Nayara has not responded to an email asking for comment on this story. India's Oil Ministry and Rosneft have not responded to requests for comments. Nayara, a Mumbai-based company, is a major player in India's rapidly growing fuel sector. It accounts for 8% the refined product output and operates more than 6,500 gasoline stations. It has been forced to reduce crude runs at its 400,000-barrel-per-day Vadinar refinery to 70-80% of capacity - it was previously running at 104% - as it struggles to find export buyers for its fuel and banks to facilitate payments, sources with knowledge of the refinery operations say. STOP-GAPS AND WORKAROUNDS Nayara's refinery, which is not connected to the pipeline network, increased its use of railcars for fuel transportation after sanctions made it difficult to charter coastal vessels or export products, forcing it redirect production domestically. Its access to more railcars was facilitated by New Delhi, which has also temporarily allowed Nayara to use four coastal vessels, sources said, including the E.U.-sanctioned Leruo and two shadow fleet ships, the Guinea-Bissau-flagged Garuda and Djibouti-flagged Chongchon. Sources said that Nayara was seeking approval from the government to use two additional coastal ships. Nayara also seeks government assistance to find equipment and materials it struggles to get due to sanctions, for a scheduled maintenance shutdown in February. Sources said that Nayara is also considering pushing back the shutdown until April while it searches for alternative raw materials. A senior official of a company, speaking on condition of anonymity due to the sensitive nature of the issue, said that the company was constantly under threat. The official cited the concern that the vessels they are currently using may be subject to future Western sanctions. We never expected to be so directly hit. "Every day is like fighting fires." Nayara, a combination of Hindi and English meaning "New Era", was originally called Essar Oil. It was purchased by Rosneft in 2017, along with a group that included the Russian fund UCP and Trafigura. Trafigura later sold its share. Nayara purchased oil from many countries until 2022. In that year, India began buying discounted Russian oil, after the West sanctioned Moscow for its invasion in Ukraine. It became the largest buyer of Russian crude by sea. Recent purchases by India have led to a diplomatic rift between Washington and New Delhi. President Donald Trump doubled tariffs on Indian imports up to 50%. MAINTENANCE AND PAYMENTS ARE THE IMMEDIATELY BIGGEST CHALLENGES Sources at the company have stated that the most immediate challenge for Nayara is to resolve the maintenance issue and be able make international payments. Sources have reported that Nayara’s principal banker, the government-owned State Bank of India (SBI), stopped processing forex and trade transactions for the refiner due to concerns over EU sanctions in August. SBI did respond immediately to a comment request. Nayara officials met with officials from the finance ministry and banks to try to resolve this banking issue. However, they have not yet found a solution. This limits Nayara’s ability to import and export fuel in foreign currencies. The Indian finance ministry has not responded to a comment request. According to shipping and traders data, Nayara exported 30% of its production before the sanctions. This was mainly through trading with Western, Middle Eastern, and Asian firms to ship products to Asia and Northwest Europe. Data shows that since then, Nayara has shipped cargoes to the Middle East, Turkey and Brazil. At least 16 of these cargoes were diesel, gasoline, and jet fuel, and they were all transported on EU-approved tankers. Industry sources claim that some of these recent exports were done through traders, with payment offset against crude supplies. According to Kpler, Nayara exports 2.23 million barrels in September. This compares with an average of 3.3 millions barrels per month from January through June. A trader from north Asia said, "We're interested in buying their products." They told me that their bank account was blocked and they couldn't accept payments.
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Gold gains for the eighth consecutive week on strong demand for safe-havens
Gold was stable below $4,000 per ounce and set to make an eighth consecutive weekly gain on Friday, boosted by geopolitical tensions and economic uncertainty and expectations for further U.S. interest rate cuts. Gold spot fell 0.2% at $3,968.69 an ounce as of 0340 GMT but rose 2.2% on the week. U.S. Gold Futures for December Delivery rose 0.3% to $ 3,982.6. Silver fell 0.3%, to $49.25 an ounce. This is a slight decline from the record-high of $51.22 per ounce that was reached on Thursday. The options markets showed a rise in gold volatility and downside protection during the last stages of this rally. It seems like a good time for gold bulls book some profits. "I expect that any pullback will be limited," said City Index senior analyst Matt Simpson. Israel's government approved a ceasefire agreement with Hamas, paving the way for the suspension of hostilities within Gaza in 24 hours, and the release of Israeli hostages within 72 hours. Israeli attacks on the besieged Gaza enclave continue. ANZ analysts stated in a report that a slowing economy, rising inflation, a changing geopolitical environment, and diversification away from U.S. investments and the dollar would keep the investment demand for gold and central bank purchases strong. Renewed rate cuts will also help the metal. On Wednesday, the price of gold surpassed $4,000 an ounce for a first time, hitting a new record high at $4,059.05. This non-yielding investment, which is traditionally used as a hedge in times of geopolitical or economic uncertainty, has risen by 52% so far this year. The rally was fueled by geopolitical tensions, central bank purchases, increasing exchange-traded fund inflows and expectations of U.S. interest rate cuts. The minutes of the U.S. Federal Reserve meeting for September, released on Tuesday, revealed that Fed officials were in agreement that the risks to the U.S. employment market were sufficiently high to warrant a cut in rates, but they remained cautious due to stubborn inflation. In September, the Fed began a new cycle of rate cuts with a reduction of 25 basis points. The traders expect a 25 basis-point cut in both October and December. Palladium fell 2.3%, to $1379.25, and platinum dropped 1%, to $1601.78, (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
US deploys 200 troops to Gaza Task Force without any operations on the ground
Two senior U.S. government officials announced on Thursday that the United States would deploy 200 troops to Gaza as part of a task force for stability. There will be no Americans present on the ground.
According to the officials, who spoke on condition of anonymity with reporters, the 200 people would form the core of a taskforce that would also include representatives of the Egyptian military, Qatar and Turkey, as well as the United Arab Emirates.
Officials said that the exact location of U.S. forces had not yet been determined. They would create a joint command center and integrate the other security forces in Gaza that will be working to coordinate with Israeli troops to avoid clashes.
One of the officials said, "No U.S. soldiers are planned to go into Gaza."
Officials said they hoped that the Gaza deal would, once implemented, cool tensions in this region and provide a basis for further negotiations between Israel and Arab countries on normalization.
In his first term, U.S. president Donald Trump brokered the Abraham Accords - normalization agreements between Israel and Bahrain and the United Arab Emirates as well as Morocco and Sudan.
Officials said Saudi Arabia, Mauritania Algeria, Syria, Lebanon, and Indonesia are all candidates for such an agreement. (Reporting by Steve Holland and Ismail Shakil, editing by Diane Craft & Cynthia Osterman).
(source: Reuters)